OPEC Production Growth Depends on Stability in Libya, Nigeria and Iraq.

Catogory : Market Report

As crisis continues in Venezuela, net growth in total production capacity of the Organisation of Petroleum Exporting Countries would, among others, be determined by stability in Libya Nigeria and Iraq, the International Energy Agency (IEA) has said.

Oil 2018: Venezuela in crisis,net growth in total OPEC capacity would be only 750,000 barrels per day.

This, the agency pointed out, would also be based on an assumption that shut-in production of around 500,000 b/d from the neutral zone was finally re-started.

“Within the OPEC countries, the biggest risk factor is, and will likely remain, Venezuela. Our estimate for February shows output down again, by 60 kb/d.

New oil resources fell to another record low in 2017, with less than four billion barrels of crude, condensate and NGLs found. In the past three years, we have seen oil production from China, Mexico and Venezuela fall by a combined 1.7 mb/d as a consequence of lower investment.

China’s decline has slowed; in Mexico, impressive reform proposals are being developed and production could return to growth by 2023.