Shale production is expected to grow significantly from 2018, with a yearly addition of 1 million barrels per day, while offshore output will see a decline from the same year, according to Rystad Energy.
“Whilst shale has proven to be resilient with only marginal reduction in produced volumes, only 1.3 billon barrels of new offshore oil volumes are sanctioned in 2016, compared to a yearly average around 10 billion barrels in the period 2010-2013,” Espen Erlingsen, vice president of analysis at Rystad Energy, said.
With the announced OPEC production cut Wednesday, Rystad Energy expects global liquid production to remain at current levels into next year. At the same time, demand is expected to grow by around 1.3 million barrels per day. This means that the large amount of stored oil will decline considerably in 2017.
“This will be the second year in a row in which global oil production fails to grow”, Erlingsen said.
“Shale is the least vulnerable, while offshore continues to be the victim since OPEC’s decision in November 2014,” he added.
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