Press

OPEC Must Extend Production Cuts to Balance Market


The medium-term future of the oil & gas industry rests with OPEC's impending decision to potentially extend production restrictions beyond the end of March 2018. Westwood predicts a nine-month extension would lead to a supply-demand equilibrium in 2018, avoiding a return to a significant supply glut. With no such extension currently agreed, Westwood's base case is an oversupplied market comparable with that of 2015.

World Drilling & Production Market Forecast

2015-2019 supply-demand balance: base case vs extended OPEC cut
Source – Sectors

Sectors subscriberslog in here to view the latest report in full.

Not a subscriber?– Contact Gareth Hector to view the report today.

Key Conclusions

  • OPEC has cut deeper than its initial agreement despite low compliance from Iraq and non-OPEC participants.
  • The glut of stored oil is still present and stockpiles will remain above their five-year average by the end of 2017.
  • With OPEC production cuts ending in March, global oil production is predicted to rise 3.1 mmbbl/d in 2018
  • Without additional OPEC intervention, Westwood's base case is a significant oversupply of 1.3 mmbbl/d, potentially sustained over the rest of the decade by further gains from the US and additions in the Middle East.
  • US onshore drilling activity to rise 39% in 2017 and grow at an 11% CAGR to 2023 (base case).
  • Offshore drilling for 2017-2023 down 13% on 2010-2017 due to the decline of project sanctioning over the last two years.

For more information on the latest World Drilling & Production Market Forecast please contact Gareth Hector or Matt Cook (Senior Analyst) for more details or for a live demonstration of the Sectors D&Pdata module.


Visit source site

douglas-westwood.com/report/drilling-and-productio...

westwood global energy groupSinopecOilgasonshoreOffshore

More items from oilvoice


Cue Energy Quarterly Report Q1 FY19

SUMMARY OF ACTIVITIES Highlights $3.9 million net cashflow for the quarter, increasing cash to $20.86m Paus Biru -1 Exploration well commenced operations WA-359-P 12 month Suspension and Extension granted Sustainable Business Total net production of 27,270 barrels (bbls) of ...

OilVoice Press - OilVoice


Posted 1 hour agoPress > ReportCue Energyexploration +3

88 Energy Limited Conventional Portfolio Update

88 Energy Limited (ASX: 88E) (“88 Energy” or the “Company”) provides the following update related to ongoing work on its conventional prospect portfolio at Project Icewine, located on the Central North Slope, Alaska. Highlights Icewine 3D seismic inversion substantially complete for both shal ...

OilVoice Press - OilVoice


Posted 1 hour agoPress > 88 EnergyPortfolio UpdateASX +6

Total - Australia: Ichthys LNG Project Begins Gas Exports

Paris – Total announces that the first cargo of liquefied natural gas (LNG) from Ichthys LNG has left Darwin, in the Northern Territory of Australia, following the production start-up at the end of July. Ichthys LNG will develop reserves of more than 3 billion barrels of oil equivalent located o ...

OilVoice Press - OilVoice


Posted 1 hour agoPress > TotalAustraliaIchthys +5

Gazprom to Start Production Drilling at Kovyktinskoye Field in 2019

A working meeting between  Alexey Miller , Chairman of the Gazprom Management Committee, and Sergey Levchenko, Governor of the Irkutsk Region, took place in St. Petersburg today. Alexey Miller Enlarged photo (JPG, 3.2 MB) The parties discussed ongoing and future cooperation, noting th ...

OilVoice Press - OilVoice


Posted 1 hour agoPress > GazpromProductionDrilling +6

Technical Analyst: Oil Stock Looking Set to Break Higher

Technical analyst Clive Maund charts a small-cap oil and gas company with a play in Oklahoma's SCOOP region that he sees as a strong buy. With a market crash drawing closer the only sector we will generally be buying at this time is the precious metals sector, which is about the only sector ...

OilVoice Press - OilVoice


Posted 16 hours agoOpinion > Streetwise ReportsOil StocksScoop +5
All posts from oilvoice