The former forecasting head of the Organisation of Economic Cooperation and Development believes the shale gas revolution could spark a slide in oil prices over the next 10 years.
In a report written with Puma Energy and seen by The Times, Dr John Llewellyn described the invention of 'fracking' to extract the gas as 'game changing technology'.
As a consequence Llewellyn would not be surprised to see the price of oil fall to around $50 a barrel between now and 2020.
He believes the trend could be the direct opposite of what happened in the 1970s when the price of oil doubled on a dramatic increase in US imports.
'[The change] contributed importantly to the quadrupling of the world energy price in 1973-74 and further double in 1978-79,' the report said.
'If, as expected, the US becomes energy self-sufficient over the coming 20 years, the shift could be equally profound.'
The news comes after estimates last week suggesting there was enough shale gas in the UK to power the country for 43 years.
Last month the International Energy Association said, in its latest five-year outlook, that the supply shock of stronger than expected North American output could keep oil prices depressed through to 2018.
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