The outlook for the global energy sector will be at the forefront of the agenda when the Institute of International Finance gathers for its annual spring meeting in Doha, Qatar, this month. This is for good reason. Since oil prices began their swift descent in June 2014, cracks have started to emerge in the existing framework of global oil supply and demand. The position of the Organisation for Petroleum Co-operation (OPEC), as well as its constituent member states, which have dominated supply for decades, is eroding in the face of unconventional oil production from North America.
The global relevance of US shale producers has been self-evident for some time. But what has changed in this latest oil price plunge is their position in the energy pecking order. Today, American shale producers, operating from Texas to North Dakota, have emerged as the world’s key swing supplier. This status became clear following OPEC’s decision to maintain its existing output in November 2014, in an effort to squeeze higher cost producers.
