...

Main sources of non-OPEC oil supply growth revealed

Oil&Gas Materials 11 July 2018 10:13 (UTC +04:00)

Baku, Azerbaijan, July 11

By Leman Zeynalova – Trend:

Non-OPEC petroleum and other liquid fuels supply will increase by 2.6 million barrels per day in 2018, the US Energy Information Administration (EIA) said in its July Short-Term Energy Outlook (STEO).

Combined production growth of 2.4 million barrels per day in the United States and Canada accounts for most of the 2018 supply growth, according to the EIA.

EIA expects non-OPEC petroleum and other liquid fuels production to rise by another 2.3 million barrels per day in 2019.

Combined production growth of 1.7 million barrels per day in the United States and Canada is again forecast to contribute most of this growth, and Brazil’s production is expected to grow by 0.3 million barrels per day in 2019, according to the report.

EIA believes that other sources of growth for non-OPEC petroleum and other liquid fuels production in 2018 and 2019 include Russia and Kazakhstan.

EIA expects production increases in these two countries as a result of the recent production agreement between OPEC and some non-OPEC countries to raise output.

Although no official production targets were allocated to any of the signatories of the OPEC/non-OPEC production agreement following the June 2018 meeting, EIA expects Russia’s liquid fuels production to grow by less than 0.1 million barrels per day in 2018 and by 0.2 million barrels per day in 2019.

“Russia’s oil companies reportedly have about 0.3 million barrels per day of available production capacity that could be brought online within a relatively short period of time. Kazakhstan, where the Kashagan field is expected to provide much of the production increase, is forecast to see liquid fuels supply grow by 0.1 million barrels per day 2018 and by less than 0.1 million barrels per day in 2019.”

---

Follow the author on Twitter: @Lyaman_Zeyn

Tags:
Latest

Latest