U.S set to become net exporter of oil: IEA

Crude production is set to continue expanding in the United States thanks to shale oil, with the country becoming a net exporter from 2021, a development which should reinforce global energy security, the IEA said on Monday.

"The second wave of the U.S shale revolution is coming," Fatih Birol, the executive director of the International Energy Agency, said in a statement.

New technology that allows for extracting oil and gas from shale rock formations has led to a boom in oil production in the United States in recent years.

With low production costs, that boom is set to continue.

The IEA forecasts the United States will account for two-thirds of the increase in global oil production and some three-quarters of the expansion of liquefied natural gas (LNG) over the next five years.

This will help the United States surpass Russia and nip at the heels of Saudi Arabia as the world's top exporter.

"This will shake up international oil and gas trade flows, with profound implications for the geopolitics of energy," said Birol.

Rising U.S shale production was one of the main drivers in the collapse in oil prices in 2014, from which the oil industry is just recovering.