Global oil supply to fall 6% by 2030 due to delayed projects

Global oil supplies may be 6% less than expected by 2030 because of delays to investments by energy companies in response to falling crude prices due to the coronavirus crisis, data from energy analysts at Rystad showed. Oil and gas companies across the world have slashed investment budgets, exiting projects or delaying bringing them onstream to counter a fall in crude prices to record lows due to a supply glut as the coronavirus outbreak destroyed demand.

Delayed final investment decisions (FID) for projects which take years to come on stream are already expected to shrink global supply of oil and gas by 5.6% by 2025, with the majority of the revisions coming from shale oil, mostly found in the United States, Rystad said. Continental Resources, the largest oil producer in North Dakota has halted most of its production in the U.S. state and notified some customers it would not supply crude after prices dived into negative territory this week, people familiar with the matter said.

All this leaves the global oil and gas supply on track to drop off by 6.3% by 2030 compared with what was expected before the price crash, the Rystad data showed. It estimates that $195 billion worth of non-shale projects are being delayed, most of which are gas and gas condensate field developments. Geographically the biggest slump is in the Middle East in that group.

Global oil supply to fall 6% by 2030 due to delayed projects: data, Reuters, Apr 24