A new chart from Morgan Stanley throws into relief just how important the U.S. shale boom has been to preventing oil prices from going parabolic in response to recent turmoil in Iraq.
Markets are expecting 17% of new global crude supplies through 2018 to come from Iraq. The threat of that production getting cut off has caused oil prices to jump $US5 in the past week.
What is not in doubt is the America’s 3.8 billion barrels a day’s worth of projected output — expected to account for 41% of all new supply growth through the same period.
Here’s the chart (the asterisk signifies an OPEC country):