Falling oil prices may cut investment in U.S. shale oil by 10 percent next year, the International Energy Agency (IEA) said on Wednesday, slowing growth in a sector that has turned the U.S. into a major global producer.
“A well-supplied oil market in the short-term should not disguise the challenges that lie ahead, as the world is set to rely more heavily on a relatively small number of producing countries,” Fatih Birol, the IEA’s chief economist, stated in the agency’s 2014 “World Energy Outlook” published on Wednesday.
Benchmark oil prices have dropped by about 30 percent over the past four months on the back of a mounting oil glut from the Middle East and North America, which is putting pressure on oil-producing nations and oil companies.
On Wednesday, Brent crude slipped near $81 a barrel, close to a four-year low.
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