DEMAND FOR OIL AND GAS GROWS FASTER THAN PRODUCTION IN MOST PARTS OF THE WORLD, ACCORDING TO NEW REPORT FROM IOGP WITH DATA FROM LATIN AMERICA AND THE CARIBBEAN
Notwithstanding the growth of renewables and energy efficiency gains, in most regions of the world, the demand for oil and gas has continued to grow alongside that for energy.
The new Global Production Report of the International Association of Oil & Gas Producers (IOGP) shows that oil demand stood 30 % higher in 2018 than in 2000, while natural gas demand increased more dramatically by 60 % during the same period.
With the exception of Europe, Central and South America, where demand is stagnating or in slow decline, the Report shows new records for consumption across all other world regions in 2018. This could turn some of the largest exporting regions such as Africa into importers in the coming years.
This growth highlights the importance of responsible resource development policies and the need for continued significant investments to make up for the average 6 % depletion rate of existing fields.
The IOGP Production Indicator (PI) shows the level at which each of the seven regions is able to meet its own oil or gas demand. A PI higher than 100 % means the region produces more than it needs to meet its own requirements and, therefore, it can export.
The regions can be divided in three distinct groups when it comes to supply/demand balance: net importers (Europe, Asia Pacific), those at or near self-sufficiency (Central & South America and North America), and those that are net exporters of oil and gas (Africa, CIS and the Middle East).
The Report’s data is based on material drawn from the latest BP Statistical Review of World Energy. Each region also features a commentary section by an IOGP Member active in that part of the world.
ARPEL contributed in the section on “The Future of Natural Gas in Central and South America.” The Executive Secretary of the Association, Mr. Izeusse Braga, stated, “Of all the region's gas developments, Vaca Muerta in Argentina remains one of the most exciting. Its shale/tight gas is largely responsible for the continuing growth in Argentina's production, which will open new opportunities within the region as well as globally, with an anticipated investment in LNG facilities to serve a worldwide market.”
In addition, he said, "There is also considerable potential in Bolivia, with 303 billion cubic meters of certified reserves.” He added, “Brazil has achieved a record output of 118 million cubic meters per day; pre-salt gas production represents over 60 % of this amount.”
He highlighted, “A promising development in Peru was the approval by the environmental authorities to develop a USD4.4 billion project to develop onshore block 58 that borders two other Camisea blocks that are currently the nation's principal gas producers.”
Braga further referred to the situation in Colombia, Trinidad and Tobago, Panama and El Salvador.
The Executive Director of IOGP noted, “This third edition of our Global Production Report shows once again why failing to invest in existing and future oil and gas fields is simply not an option given global market needs.”
Link to download the full report: https://www.iogp.org/bookstore/product/global-production-report-2019/
ARPEL is a non-profit association gathering companies and institutions of the oil, gas and biofuels sector in Latin America and the Caribbean. It was founded in 1965 as a vehicle for cooperation and mutual assistance among companies in the sector, with the primary purpose of actively contributing to industry integration and competitive growth and the sustainable energy development in the region.
Membership currently represents a high percentage of the upstream and downstream activities in Latin America and the Caribbean, and includes operating companies, providers of technology, goods and services for the value chain, and national and international institutions in the sector.
The International Association of Oil & Gas Producers (IOGP) is the voice of the global upstream industry. Oil and gas continue to provide a significant proportion of the world’s energy to meet growing demands for heat, light and transport.
Our Members produce 40 % of the world’s oil and gas.They operate in all producing regions: the Americas, Africa, Europe, the Middle East, the Caspian, Asia and Australia.
We serve industry regulators as a global partner for improving safety, environmental and social performance. We also act as a uniquely upstream forum in which our members identify and share knowledge and good practices to achieve improvements in health, safety, the environment, security and social responsibility.