A worldwide glut of crude oil, partially fuelled by the US shale revolution, has thrown the market off balance causing prices to plummet to historic lows, according to a new report from Stratas Advisors entitled Global Hydrocarbon Supply Outlook.
Report highlights
Crude oil and condensate production
- After a dip in 2016 (driven by the historical low oil price), global crude oil and condensate production is projected to continue to grow (with average annual growth rate of about 1.3%) to about 104 million bpd in 2035 from current level of about 82 million bpd.
- The Middle East will continue to be the top producing region with about 35% of world production. North America and Russia-CIS will account for about 16% of the global production in the forecasting period.
- Offshore deep and ultra-deep water production will increase to about 10 million bpd from about 7 million bpd currently.
Dry natural gas production
- Globally, it will rapidly increase in the medium to long term and reach ~525 billion ft3/d by 2035, increasing about 56% from around 336 billion ft3/d currently.
- The top three producing regions (Russia-CIS, North America and theMiddle East) will account for about 68% of total global output by 2035.
NGL production
- Globally, it will grow at a relatively constant rate (about 2.3% annually) in the medium to long term from current level of about 10 million bpd.
- NGL production is projected to reach more than 15 million bpd by 2035.
- North America and the Middle East will remain the top producing regions.
Adapted from press release by Rosalie Starling