Skip to main content

ESAI Energy sees ample crude supplies

Published by
Oilfield Technology,

In its recently released five-year Global Crude Oil Outlook, ESAI Energy projects healthy non-OPEC supply growth to 2023. Three trends underscore the expectation that non-OPEC crude and condensate supply will increase by an average of 1 million bpd per annum from 2019 through 2023.

  • Infrastructure catching up with US shale growth.
  • Streamlined, cost-effective offshore projects from the Gulf of Mexico, Latin America, and the North Sea brought to production.
  • Russia moving to a “coordinated” growth strategy.

Still, US Shale remains the obvious key driver. Drilling time has decreased, and initial production rates have gone up with longer laterals and 'super-fracs'. Moreover, in the past year, many shale producers have brought down debt and increased shareholder returns. Higher prices increased cash flow, and living within their means paid-off, shown by improved bottom lines on quarterly financial reports. Permian production has benefited, held back only by infrastructure.

“There is a misperception that a supply crunch is imminent,” points out ESAI Energy’s, Sarah Emerson. “In a five-year horizon, the potential for non-OPEC supply growth is impressive. This will have a bearing on the degree to which OPEC will have to dip into spare capacity to offset disruptions."

Read the article online at:

You might also like

Professor Andrew Woods reports on oil & gas industry safety risks

A report on the safety risk of working in confined spaces, developed by Professor Andrew Woods of the BP Institute at Cambridge University, indicates that many organisations in the oil & gas industries have been operating below the generally tolerable levels of safety risk.


Embed article link: (copy the HTML code below):


This article has been tagged under the following:

Upstream news Oil & gas news