Latest PetroLogic report outlines oil supply constraints
Published by Emily Thomas,
Deputy Editor
Oilfield Technology,
Oil balances remain tight and prices are comfortably pinned above US$100 with risks to the upside, according to Enverus Intelligence Research’s latest PetroLogic report, Supply Constraints Dominate. In it, analysts outline their oil and gas fundamental view and price outlook for the near-to-medium term. EIR is a subsidiary of Enverus, the leading global energy data analytics and SaaS technology company.
“Despite signs of a slowing global economy, US oil demand has yet to respond to higher prices as it nears pre-pandemic levels. Similarly in Asia, India’s recourse to extra discounted Russian oil has steadied consumption while we expect China to make a strong recovery in the second half of the year after COVID-19-related lockdowns.” said Al Salazar, lead report author and senior vice president of Enverus Intelligence Research.
“The Freeport outage cut a cumulative ~24 Bcf of feed gas demand as of June 20, loosening US gas balances and helping inventories recover around half of the deficit to the 5-year average compared to our previous outlook. On the production side, gas out of the Haynesville is expected to grow about 2.2 Bcf/d E/E in 2022 and about another 0.3 Bcf/d E/E in 2023 as takeaway capacity out of the play becomes constrained,” he said.
Bill Farren-Price, co-author of the report, noted that OPEC-10 oil production had fallen back in May with Nigeria and Iraq output declining and more than offsetting gains in Saudi Arabia and the UAE. “President Joe Biden’s planned July visit to Saudi Arabia will set expectations for supply coordination later in the year,” he said.
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