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The current crude-oil price levels give boost to shale-oil production, according to Fatih Birol, Executive Director, International Energy Agency.
Commenting on the current crude-oil price and the impact on production, Birol said: “We see another wave of oil production coming from the US. We expect about 1.5 million barrels of oil per day in the next few years. But if prices go higher, to about $70-80/bbl, this amount may be doubled to 3 million barrels per day.”
He spoke to BusinessLine on the sidelines of an event where India announced it has upgraded its status in the IEA to that of an Association Country from a Partner Country.
India is targeting a 10 per cent reduction in imported crude-oil dependence.
The achievement of this target hinges on increasing domestic production and higher fuel efficiency.
Birol said: “The Hydrocarbon Exploration and Licensing Policy is getting great interest globally… The lower interest is not a specific situation regarding India. The low oil prices have reduced the interest of oil companies to explore. The amount of oil explored last year worldwide was the lowest since 1960 because companies cut their exploration budgets.
“If prices go up, India will see much more investments coming in. If they remain at the current levels, companies will be much more cautious while making their investment decisions not only in India, but across the world.”
At the event, Minister of State (Independent Charge) for Petroleum and Natural Gas Dharmendra Pradhan said: “The bilateral engagements between the two will further intensify, and both can work towards balancing the global energy dynamics.”
Minister of State (Independent Charge) for Coal, Power and Renewable Energy Piyush Goyal added: “India attaining an Association status is expected to serve as a bridge and platform for wide-ranging and deeper cooperation and collaboration among IEA Member and Association countries.”
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