Oil and gas demand is stable or rising in all regions of the world, meaning additional investments are needed for production to keep up. Growing indigenous requirements reduce volumes available for export in many regions, IOGP’s new Global Production Report shows.
The report, based on BP's latest Statistical Review of World Energy, establishes an IOGP Production Indicator (PI)—the level at which a region is able to meet its own oil or gas demand—for seven regions across the world. A PI higher than 100% means the region produces more than it needs to meet its own requirements and so can export.
The main conclusion of the report is that demand growth and the annual depletion rate of 6% of existing fields are driving the need for investment to gain additional volumes. Such investment will depend on regional and local policies that encourage responsible resource development.
The report’s data show three distinct groups of regions when it comes to supply/demand balance: net importers (Europe, Asia Pacific) self-sufficient ones (Central and South America and North America), and those that are net exporters of oil and gas (Africa, CIS, and the Middle East).
However, the rising demand trend—for natural gas in particular—could well turn a number of exporting regions into net importers in the coming years, including major exporting regions such as Africa and Central and South America.
“Clearly, oil and gas demand growth remains strong across the globe. The question is how we mobilize the investments necessary to make up for the depletion of existing fields and to meet this rising demand responsibly over the long term,” said IOGP Executive Director Gordon Ballard.
Fing the IOGP Global Production Report here.
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