yolowire.com - The International Energy Agency (IEA) is forecasting that U.S. and Canadian Oil producers will set output records through 2030.
The record production in the U.S. and Canada is likely to contribute to a massive global surplus of crude oil by the end of this decade, concludes the IEA’s new report on the energy market.
The agency’s latest forecast calls for global oil demand to peak in 2029 and start to shrink during 2030.
Non-OPEC nations are set to fuel production gains, led by America, with U.S production forecast to rise by 2.1 million barrels per day (bpd) above 2023 levels by 2030.
At the same time, Canada’s oil industry is expected to add 680,000 bpd over the next seven years.
Global oil production is forecast to grow 8.7% between 2024 and 2030, based on the IEA’s figures. U.S. production is expected to rise 6.9% over that period.
In Canada, the IEA notes the impact of additional export capacity due to the recently expanded Trans Mountain crude oil pipeline.
In a separate report, S&P Global Commodity Insights has forecast that Canada will produce 3.8 million bpd of crude oil by 2030, a 15% increase from current levels.
However, Canada’s oil production could be curtailed in coming years by a proposed emissions cap. The federal government in Ottawa has promised legislation targeting the oil and natural gas industry, which is Canada’s largest source of greenhouse gas emissions.
West Texas Intermediate (WTI) crude oil, the U.S. standard, is currently trading at $77.83 U.S. per barrel. Brent crude oil, the international benchmark, is trading at $82.06 U.S. a barrel.