Deutsche Bank energy analyst Adam Sieminski reports today that OECD daily demand for crude oil will fall by 300,000 barrels in 2008, according to the IEA, "and we agree with this assessment." Meanwhile, daily demand by non-OECD-member countries is expected to be higher this year, by 1.3 million barrels, "while most other forecasts remain closer to more than 1.1 million." And, forecasts for more daily output from non-OPEC producers has fallen to 650,000 barrels. The net effect? "The (daily) 'call on OPEC' in the Deutsche Bank forecast rises by 200,000 barrels in 2008 despite our demand downgrade." As of today, non-OECD-member countries are in a position to have a greater effect on global oil prices than the world’s No. 1 crude-oil user: the U.S. This means Americans have opened the door, and wide, to leaving oil pricing to other countries. Americans risk becoming price-takers, and giving others the power of the price-maker. Sieminski also notes that OECD-member-countries’ stockpiles of crude oil means they have 53 days worth of internal reserves. And, Congress just put a halt to adding more oil reserves to the U.S. Strategic Petroleum Reserve! –Nissa Darbonne, Executive Editor, Oil and Gas Investor, A&D Watch, Oil and Gas Investor This Week, www.OilandGasInvestor.com; ndarbonne@hartenergy.com
Recommended Reading
US Drillers Cut Oil, Gas Rigs for Fifth Week in Six, Baker Hughes Says
2024-09-20 - U.S. energy firms this week resumed cutting the number of oil and natural gas rigs after adding rigs last week.
E&P Highlights: Oct. 14, 2024
2024-10-14 - Here’s a roundup of the latest E&P headlines, including another delay at one of the largest gas fields in the world and two major contracts in West Africa.
EY: How AI Can Transform Subsurface Operations
2024-10-10 - The inherent complexity of subsurface data and the need to make swift decisions demands a tailored approach.
Kolibri Global Drills First Three SCOOP Wells in Tishomingo Field
2024-09-18 - Kolibri Global Energy reported drilling the three wells in an average 14 days, beating its estimated 20-day drilling schedule.
Baker Hughes to Supply Petrobras' Presalt Fields with Flexible Pipe Systems
2024-10-28 - Baker Hughes said the systems will look to address the issue of corrosion cracking from CO2, which can arise as gas is reinjected into wells.