ESAI Energy sees ample crude supplies
Published by David Bizley,
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
bp begins oil production from major new platform offshore Azerbaijan
bp, as operator of the Azeri-Chirag-Gunashli (ACG) project, has announced the start-up of oil production from the new Azeri Central East (ACE) platform as part of the ACG field development in the Azerbaijan sector of the Caspian Sea.