America is on its way to becoming the largest oil producer in the world.
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The nation will surpass Russia, the current No. 1, by 2023, the International Energy Agency estimated on Monday. U.S. crude production is projected to hit a record of 12.1 million barrels a day in 2023, which would reflect an increase of roughly 2 million barrels compared with this year. Russia pumps about 11 million barrels of oil each day.
IEA Executive Director Fatih Birol, speaking at the CERAWeek by IHS Markit conference in Houston, said the U.S., Brazil, Canada and Norway will contribute to supply growth by non-OPEC nations, according to The Wall Street Journal.
The U.S. has experienced strong production growth in recent years as such energy giants as Exxon Mobil (NYSE:XOM) have boosted their output from shale regions including the Permian Basin in Texas and the Bakken Formation in North Dakota. The IEA said U.S. oil will account for 60% of the 6.4 million new barrels produced daily between now and 2023.
Oil exports from the U.S. are also poised to climb after Congress lifted a 40-year ban in late 2015. Exports will more than double over the next six years to 4.9 million barrels a day, according to the IEA’s estimates.
U.S. crude rose 2% to $62.48 a barrel Monday.