Global analytics, Analytical decisions

Go to New Era Global analytics, Analytical decisions

What is oil for a modern human? It’s almost everything and everywhere. Plastic, pills, tights, construction materials, medicines, toys and etc are made of oil… Without this mineral it is hard to imagine the work of any vehicles, technological transport, and large plants. Oil is used for gasoline, kerosene and diesel fuel production. Moreover, it’s used for production of gas for house heating. Oil and its derivatives are applied in agricultural sector, including fertilizing and animals feeding! We meet crude hydrocarbons in the processed form at home and at work, in the office and in the street, at hospital or department store. The experts do not see any major alternative within twenty-thirty years.

Development of oil and gas industry affects the global economy at large and some countries in particular. When price per barrel goes down the crisis signs occur which affect different life spheres.

On average annual global oil and oil products export is about 43 million barrels per day. This amount is provided by 23 countries (more than 98% of global export). OPEC countries’ daily output is 27 million barrels – it is 63% of net global export. OPEC share at the level of 63% in global export is stable since 2003 with prior decline for 70% in 1994-2002 period due to production growth in Russia, Kazakhstan and Azerbaijan.

Global oil production leader is Iraq, with 51% increase.

Oil production is rapidly growing in Equatorial Guinea, for 41% per year, which shows increased interest in African deposits. Twice faster the production is growing in Kazakhstan.

It also grows in OPEC countries. The production decline is observed in the United States Norway and Great Britain.

Over a year the global consumption increased for 4,5% (80,2 million barrels per day), consumption for 3,4% (80,7 million barrels).

Even 3% consumption growth in the USA and 15% growth in China do not allow global consumption to overtake the consumption rate.

The data confirm the words of market analysts saying that oil produced in the world is enough, and that record high prices are determined by the lack of refining capacity.

Considering the fact that OPEC oil production volume is growing almost one and a half times faster than the global average, one can hardly expect a sharp decline in production quotas. It gives an opportunity for bank analysts to talk about the inevitable drop in oil prices, but for every forecast, there is another – opposite.