Baku, Azerbaijan, July 11
By Leman Zeynalova – Trend:
Petroleum and other liquid fuels production in countries not part of the Organization of the Petroleum Exporting Countries (OPEC) is expected to rise by 2.3 million b/d in 2019 and by 2.1 million b/d in 2020, compared with growth of 2.6 million in 2018, Trend reports citing the Short-Term Energy Outlook (STEO) of the Energy Information Administration (EIA).
EIA’s forecast growth in the United States contributes 2.0 million b/d in 2019 and 1.4 million b/d 2020, with Brazil providing another 0.2 million b/d in 2019 and 0.3 million b/d in 2020.
EIA expects Canada and Norway to also be key contributors to non-OPEC growth in 2020. Growth in Brazil’s petroleum and other liquid fuels production is the result of at least six new floating production, storage, and offloading vessels (FPSOs) that have been added since 2018.
EIA expects Canada’s total liquid fuels production to decrease slightly in 2019 as a result of province-level government-imposed production cuts in Alberta. In 2020, EIA expects Canadian production to increase by 0.2 million b/d after the cuts end in late 2019. EIA does not expect any additional production from new upstream projects to come online during the forecast period but does expect expansions of existing projects to continue. However, the uptake of crude by rail and the timing of pipeline capacity coming online remain uncertain and have the potential to temper growth in 2020.
On July 2, OPEC producers and several non-OPEC producers (OPEC+), notably Russia, extended production cuts announced in December 2018 through the end of the first quarter of 2020. EIA expects Russia’s liquid fuels production to decline by 30,000 b/d in 2020 as a result of the cuts.
---
Follow the author on Twitter: @Lyaman_Zeyn