Baku, Azerbaijan, Feb.27
By Leman Zeynalova – Trend:
Wood Mackenzie research and consulting company has revised its forecasts for the output of oil majors by 3 million barrels of oil equivalent per day (boe/d) as compared to the last year, Trend reports with reference to the company’s analysis.
“Oil and gas companies are building rather than reducing their exposure to the sector. The downturn since 2014 has been a catalyst to revitalize portfolios, with the Majors (are considered to be BP, Chevron Corporation, ExxonMobil, Royal Dutch Shell, Total and Eni, with ConocoPhillips also sometimes described in the past as forming part of the group) set up for a period of sustained growth. We forecast these seven IOCs (international oil companies) combined will produce 23 million boe/d by 2023, 3 million boe/d more than we’d forecast only a year ago,” said the company.
The higher volumes are a result of aggressive upstream portfolio repositioning and business development, explains Wood Mackenzie.
The growth rate of 3 percent per annum to 2023 is astonishing considering the near halving of prices, according to the company.
Wood Mackenzie believes that new investment needs to be focused on lower carbon-intensive assets, lighter liquids and with gas a priority – though it’s not happening yet.
“The 3 million boe/d growth we forecast for the Majors is split 50/50 between oil and gas. Technologies that mitigate emissions, such as carbon capture and storage, need to be part of the strategy for the bigger companies. Some may also consider other carbon-sink strategies such as re-forestation. Zero carbon power production is already gaining traction,” reads the analysis.
Second, according to the company is more effective advocacy. “Society is dependent on oil and gas for some time before twilight sets in. The industry needs to make the most of the positive contribution it can still make to future global economic growth.”
---
Follow the author on Twitter: @Lyaman_Zeyn