IEA boss writes of legislative "threat" that "could turn US oil boom to bust."

Maria van der Hoeven in the FT: Thanks to fracking, “US crude oil production has increased by 1.3m barrels per day in the past two years, and the US Energy Information Administration forecasts that the US will produce a further 1.4m b/d by the end of 2014.” Fracked oil trades at a discount to international benchmarks, but there is a problem. “Ironically, American end-users do not benefit from this production windfall since US retail product prices are still heavily influenced by international markets. If this disconnect in prices were to continue, it could threaten the economic viability of these new supplies, potentially stopping the boom in its tracks. …This will not be the first time in the history of the oil industry that changes in technology and market conditions expose a misalignment between resources and regulations. While much of the anxiety about energy resources in recent years has focused on “peak oil” or other aspects of resource scarcity, in fact some of the bigger challenges facing the energy industry lurk not below ground but above. / Some may see this as a choice between keeping American oil within US borders for reasons of economic security and allowing the US to generate billions of dollars in new export revenues. But market realities suggest a far simpler decision ahead: either US crude is shipped abroad or it stays in the ground. Washington will need to address this misalignment, lest the great American oil boom goes bust.”
JL: This remarkable article, mentioning climate change not once, casts the boss of the International Energy Agency as some kind of lobbyist for the US oil and gas industry.