(AMM) Shale gas driving demand in US, oil in its twilight: IEA

A shale gas "revolution" is in full swing in the United States, where domestic gas will drive out imported liquefied natural gas (LNG) and make North America an "island market" where low prices stimulate demand, particularly in power generation and the chemical industry, according to the International Energy Agency (IEA).

Meanwhile, oil is in its "twilight" as an industrial fuel and increasingly reliant on the transportation and petrochemical sectors, while power generation, industry and heating move more and more toward natural gas, the Paris-based agency said.

Natural gas also is being sought by major consumers like China, which already accounts for much of the world’s demand for commodities such as iron ore and oil. That should benefit LNG suppliers like Australia, which the IEA said is set to emerge as...

Published

June 21, 2011

02:41 GMT

Toronto