BAKU, Azerbaijan, December 16. Non-OPEC liquids supply in 2022 (including processing gains) is expected to increase by 1.9 million barrels per day (mb/d) to average 65.6 mb/d, which is broadly unchanged, compared to the last estimations, Trend reports via monthly oil outlook from OPEC.
"The production forecast for Other Eurasia was revised down, due to lower-than-anticipated production in Azerbaijan, as well as restricted output at an export terminal and a gas leak issue at the Kashagan field in Kazakhstan. Extended maintenance on UK offshore platforms, along with lower-than-anticipated output in Norway, reduced 4Q22 output in the North Sea region," the report said.
According to the report, the upward revision in liquid production in the OECD Americas, Russia and Latin America was offset by a downward revision in OECD Europe, Other Eurasia and other Asia. However, it should be noted that uncertainty remains regarding the volume of liquid assets production in Russia in December.
Thus, the US, Canada, Guyana, Russia, China and Brazil are expected to be the main contributors to the oil supply growth in the world in 2022.
At the same time, the largest drop in oil supply is still expected from Norway and Thailand - unchanged, compared to the October outlook.
Meanwhile, the US liquids supply growth forecast for 2022 is revised up slightly to an average of 1.1 mb/d.
"In the US, oil drilling activity has recovered to near pre-pandemic levels with the total rig count at its highest level since March 2020. However, producers are still challenged with labor and supply chain issues as well as cost inflation. Liquids production rose noticeably in September on the back of higher crude and condensate production, and steady growth is expected in the coming months," the report added.