Released August 06, 2019 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Italian oil and gas major Eni SpA (NYSE:E) has released the 18th edition of its World Oil Review In 2018, showing that oil reserves rose slightly by 0.4% while global demand grew by 1.4%, slightly less than in 2017.
The 0.4% growth was concentrated in the U.S., mitigated by the reduction in some OPEC countries. World oil production recorded an overall growth of 2.5 million barrels per day (Mb/d), with 88% due to the U.S. which hit a new record and consolidated its "first position in the rank of world producers," Eni's report noted. The U.S. also broke into the international crude trade, doubling export volumes and entering the top 10 ranks. Production values also rose in Brazil and Norway.
OPEC slowed down, due mainly to the downsizing of Iraq, but the Organization of the Petroleum Exporting Countries confirmed its predominance with a 73% share of the world total. The leading OPEC producer in 2018 was Venezuela, followed by Saudi Arabia and Canada. Canada saw an important recovery, exceeding the threshold of 5 million barrels per day (BBL/d), and there was also record production for Russia, which accelerated in the second part of the year. OPEC saw zero growth overall, which, despite the increases in the Gulf countries (especially Saudi Arabia), suffered losses due to sanctions against Iran (-0.2 million BBL/d) and the collapse of Venezuela (-0.6 million BBL/d).
2018 set new records with tight oil production continuing to increase the share of sweet light crudes, which rose above 20% worldwide. Only WTI, the U.S. light crude, covers 60% of global growth. The collapse of Venezuela and Mexico, and Iran's retreat prevailed over increases in Saudi Arabia and Iraq, reducing the weight of medium sour crude oil for the first time below 40%, with impacts on price differentials and refining.
Global oil demand grew by 1.4%, slightly lower than in 2017 (+1.6%) in a context of increasing oil prices. The growth is slightly under the five-year average of 1.7% recorded for 2013-2017. For the fourth year in a row, OECD gave positive support to global growth, but non-OECD maintained the dominant share, accounting for 69% of the overall growth.
The OPEC and non-OPEC alliance and the sustained growth in consumption led to a 30% rise in ICE Brent price ($72/BBL) compared to 2017 ($55/BBL). In the first part of the year the high OPEC+ discipline and the announcement of the U.S. sanctions against Iran supported increasing prices. The year ended in sharp decline, due to increases of Saudi Arabia and Russia production in excess of geopolitical losses and due to growing fears of a slowdown in economic growth.
On the refining front, Asia maintained its lead in global refining capacity growth with 77% of the 1 million BBL/d increase compared to 2017.
The World Oil Review In 2018 is the first volume of Eni's full report and is devoted to oil reserves, supply, demand, trade and prices with a special focus on crude oil quality and on refining industry. The second volume, the World Gas and Renewables Review, focused on natural gas and renewables sources (solar, wind and biofuels), will be published in autumn.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The 0.4% growth was concentrated in the U.S., mitigated by the reduction in some OPEC countries. World oil production recorded an overall growth of 2.5 million barrels per day (Mb/d), with 88% due to the U.S. which hit a new record and consolidated its "first position in the rank of world producers," Eni's report noted. The U.S. also broke into the international crude trade, doubling export volumes and entering the top 10 ranks. Production values also rose in Brazil and Norway.
OPEC slowed down, due mainly to the downsizing of Iraq, but the Organization of the Petroleum Exporting Countries confirmed its predominance with a 73% share of the world total. The leading OPEC producer in 2018 was Venezuela, followed by Saudi Arabia and Canada. Canada saw an important recovery, exceeding the threshold of 5 million barrels per day (BBL/d), and there was also record production for Russia, which accelerated in the second part of the year. OPEC saw zero growth overall, which, despite the increases in the Gulf countries (especially Saudi Arabia), suffered losses due to sanctions against Iran (-0.2 million BBL/d) and the collapse of Venezuela (-0.6 million BBL/d).
2018 set new records with tight oil production continuing to increase the share of sweet light crudes, which rose above 20% worldwide. Only WTI, the U.S. light crude, covers 60% of global growth. The collapse of Venezuela and Mexico, and Iran's retreat prevailed over increases in Saudi Arabia and Iraq, reducing the weight of medium sour crude oil for the first time below 40%, with impacts on price differentials and refining.
Global oil demand grew by 1.4%, slightly lower than in 2017 (+1.6%) in a context of increasing oil prices. The growth is slightly under the five-year average of 1.7% recorded for 2013-2017. For the fourth year in a row, OECD gave positive support to global growth, but non-OECD maintained the dominant share, accounting for 69% of the overall growth.
The OPEC and non-OPEC alliance and the sustained growth in consumption led to a 30% rise in ICE Brent price ($72/BBL) compared to 2017 ($55/BBL). In the first part of the year the high OPEC+ discipline and the announcement of the U.S. sanctions against Iran supported increasing prices. The year ended in sharp decline, due to increases of Saudi Arabia and Russia production in excess of geopolitical losses and due to growing fears of a slowdown in economic growth.
On the refining front, Asia maintained its lead in global refining capacity growth with 77% of the 1 million BBL/d increase compared to 2017.
The World Oil Review In 2018 is the first volume of Eni's full report and is devoted to oil reserves, supply, demand, trade and prices with a special focus on crude oil quality and on refining industry. The second volume, the World Gas and Renewables Review, focused on natural gas and renewables sources (solar, wind and biofuels), will be published in autumn.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
