Oil and gas drilling yields byproducts like ethane and naphtha, which are used to make plastics and chemicals. These will be in high demand as more countries around the world approach middle class status, the agency added.
The United States is positioned to take advantage of this trend, as booming oil and natural gas production creates a low-cost supply of petrochemical feedstocks.
Additionally, American drillers are poised to play a bigger role in the export market. The country has shipped as much as 2 million barrels a day in recent weeks, and the IEA said it will be prepared to ship as much as 5 million barrels a day by 2023, after building out new pipelines and export terminals.
During the next five years, the United States will surrender the title of the world's biggest oil importer to China and India, the agency estimated. In Asia, where some nations like China are refining more crude oil into gasoline at home, oil imports are expected to grow by 3.5 million barrels a day through 2023.
The Middle East will remain Asia's biggest supplier, but the region is also ramping up its domestic refinery activity, so there's opportunity for the United States to export more oil to the world's biggest demand center, according to the agency. Growing petrochemical production in China will also open a pathway for U.S. oil shipments.