The IEA report states that the effects of continued growth in North American oil supply will cascade through the global oil market. "North America has set off a supply shock that is sending ripples throughout the world," said IEA Executive Director Maria van der Hoeven, who launched the report at the Platts Crude Oil Summit in London.

"The good news is that this is helping to ease a market that was relatively tight for several years," she added. "The technology that unlocked the bonanza in places like North Dakota can and will be applied elsewhere, potentially leading to a broad reassessment of reserves." Expanding North American oil supply is great news for U.S. heating oil customers, because a growing oil supply is the best protection against oil price increases.

Market fundamentals suggest a more comfortable global oil supply/demand balance in the near future, the report states. It forecasts North American supply to grow by 3.9 million barrels per day (mb/d) from 2012 to 2018. "World liquid production capacity is expected to grow by 8.4 mb/d — significantly faster than demand - which is projected to expand by 6.9 mb/d," the report states.

To read an IEA press release about the new report, click here.