Mubasher: BHP Billiton forecasted that shale oil production would reach its peak by a little more than a decade, sparking concerns over global oil supplies in the near term.

“While I think the shale business will last and offer some very decent returns, especially shale oil, for the better part of a decade, our understanding of that is that is not going to last forever,” BHP CEO Andrew Mackenzie said.

The geology of booming fields in Texas and North Dakota shows that the shale oil would not likely be a long-term resource, he added.

Mackenzie further noted that his positive forecasts over oil on the short and medium terms were eased as the potential revolution in electric car production between 2030 and 2040 would likely push the demand higher and that would coincide with the peak in shale oil output.

BHP previously announced plans to sell its US shale oil assets but said it would remain committed to its conventional offshore business to hedge its bets.