IEA: U.S. Oil findings a “shock” across the world, will undoubtedly affect steel manufacturing

Earlier this month, the International Energy Agency released findings that America has more oil than we even know about, and is about to become an even bigger playing in the production of oil throughout he world.

“North America has set off a supply shock that is sending ripples throughout the world,” IEA Executive Director Maria van der Hoeven said in a press release accompanying the report. “The good news is that this is helping to ease a market that was relatively tight for several years.”

Over the next couple of years, the U.S., which is already the third highest oil producer in the world, will become the second. By 2020, the U.S. has the potential to become energy independent. The release mentioned that OPEC’s production could slow as projects on how to unearth this oil in the U.S. will become more prevalent.

These projects include hydrofracking, which needs steel pipes to unearth this tight oil stuck in shale rock. This is just the beginning of what could be a huge shift in global dynamics. Companies will want to come to America to try and release the oil, which will create jobs, and continue the supply of steel piping and steel tubes.

Also, there will be more technology on how to successfully and cleanly develop and hone the oil, as many environmental factors involved in hydrofracking may do more bad than good in the long run. But as it looks over the next 10-20 years, oil, pipelines and the possibility of energy independency will be on the forefront of discussion.

Written by Katapult Marketing

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