Oil producers may be tempted to boost capex in second-half 2018 to fully exploit high prices while the natural gas price outlook appears less promising until LNG facilities come online in 2021, Drillinginfo Inc. said in a report of its most recent five-year projections.

Analysts are bullish about short-term dynamics and expect commodity prices to remain at healthy levels but long-term demand will likely hinder production growth and prices.

The U.S. remains on track to pass Russia as the world’s leading producer of crude oil, Drillinginfo said, but that distinction will be delayed because of severe production declines in Venezuela and a blockade of Libya’s oil ports by a militia leader in the eastern half of the country. Replacing those lost barrels on the world market falls to Saudi Arabia and Russia.

Already have an account? Log In

Thanks for reading Hart Energy.

Subscribe now to get unmatched coverage of the oil and gas industry’s entire landscape.

Get Access