The report, the first in what will be an annual series, 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 its own demand.
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 in additional volumes. What is needed are regional and local policies that encourage responsible development.
The report is based on highly-respected BP data as well as contributions from other IOGP member organizations. It shows that the seven regions can be divided into three groups when it comes to supply/demand balance: net importers (Europe, Asia Pacific), those which are self-sufficient (Central & South America and North America), and those that are net exporters of oil & 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 & South America.
“Clearly, oil & 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 over the long term” said IOGP Executive Director, Gordon Ballard.
The IOGP Global Production Report is freely available on www.iogp.org/productionreport-2018
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