Global oil supply capacity growth is likely to stall by 2020 unless major new projects are sanctioned, said Keisuke Sadamori, Director of the Energy Markets and Security at the International Energy Agency (IEA), during the SIEW 2017 Global Launch.
He added that this could result in the world oil market tightening from 2020 onwards, bringing back concerns around price volatility and security of supply that could lead to higher prices.
In Asia, oil production is expected to decrease 7 per cent annually up till 2020 as the region’s oil fields age, according to research firm Wood Mackenzie. A significant factor for this is the focus on gas exploration that has resulted in oil finds making up only a quarter of total hydrocarbons discovered in Asia since 1990.
At the same time, Asia’s oil demand continues to rise. China and India combined will account for 46 per cent of total global oil demand growth between 2016 and 2022, said Sadamori.
Read more from Nikkei Asian Review to find out about the implications of Asia’s oil demand and supply shifts on investments in the region, and how this would impact energy security.
By: Nikkei Asian Review