OPEC - the Organization of the Petroleum Exporting Countries - has raised its expectations for North America's oil output. In its yearly World Oil Outlook, OPEC said the United States and Canada would reach 4.9 million barrels a day of oil within five years, The Wall Street Journal reported.
This new estimate comes two years after OPEC called the North American oil boom “marginal,” the WSJ reported. Last year, OPEC also estimated U.S. and Canada would reach just 1.7 million bpd by 2018, much lower than its current forecast.
As North America continues to boost its oil output, OPEC expects its group countries to see its crude oil demand fall by 1 million bpd by 2018.
OPEC pointed to advanced drilling technologies like hydraulic fracturing for higher oil and gas outputs in the U.S. and Canada. Fracking has allowed energy companies to extract resources from tight shale plays. In 2013 alone, fracking has enabled North America to increase its oil output by a third compared to last year, reaching 3.3 million bpd, the WSJ reported.
Drilling activity in the U.S. and Canada is not expected to slow down anytime soon. Energy companies in North America can turn to Broadwind Energy's gears and gearboxes, which are found in frac pump drives, to ensure high yields of production from shale plays. Broadwind provides a variety of precision gears and gearboxes, including Gleason spiral bevel gears, that enable energy explorers to unlock shale reserves and continuously produce more oil and gas.
OPEC also said, however, that the energy companies that have been successful producing significant amounts of oil and gas in North America may not be as lucky elsewhere, the WSJ reported. Abdalla el-Badri, head of OPEC, also did not admit the oil cartel underestimated the North American oil potential in its 2011 report, the WSJ reported.