US oil independency to alter energy landscape

ISTANBUL - Hürriyet Daily News

REUTERS Photo

A projected increase in oil production in the Unites States will decrease oil imports from the Middle East and “definitely change the global energy picture,” according to the chief economist of the International Energy Agency (IEA).

“The oil production of the U.S. is growing very strongly and around 2017 it will overtake Saudi Arabia. But Saudi Arabia will still remain the largest exporter of oil in the world,” Faith Birol told the Hürriyet Daily News Nov. 18 on the sidelines of the Energy and Economic Summit organized in Istanbul by the Atlantic Council.

“Just a few years ago the U.S. was importing a lot of oil from the Middle East, and as a result of these developments it will be going to the minimum, almost to zero. This is of course a major change in the global energy landscape with many implications for many things maybe beyond energy,” he said.

“There will be growing and intense cooperation between the Middle East and Asia, because Middle East oil will now go mainly to China, India and other Asian countries. There is a new dimension of global trade being built between the Middle East and Asia. This new trade dimension pillar will have of course lots of parallel flows in terms of foreign policy and investment by both sides. It’s a shift from West to East,” he added.

The rise of Iraq

Turkey may pursue energy investment opportunities with both public and private companies in alternative markets in Africa and Latin America, but the single most important country for the energy future of the country is Iraq, according to Birol.

“My suggestion [for Turkey] here is that while continuing the relationships with existing energy neighbors, Iraq could be the top priority for the next few years. … There are some difficulties perhaps between these two countries, but I believe that at the end of the day it will be common sense which will determine the future relationship between these two countries,” he said.