Skip to main content

ESAI Energy sees ample crude supplies

Published by , Senior Editor
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: https://www.oilfieldtechnology.com/special-reports/03082018/esai-energy-sees-ample-crude-supplies/

You might also like

McDermott awarded offshore contract by Brazil's BRAVA Energia

Under the contract scope, McDermott will execute the transportation and installation of flexible pipelines, umbilicals and associated subsea equipment for two new wells at the Papa-Terra field and two new wells for the Atlanta Phase 2 development.

 
 

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


 

This article has been tagged under the following:

Upstream news Oil & gas news