Nigeria makes gain as crude oil production increase

By Ikenga Chronicles October 14, 2016

Nigeria is expected to make gain as record shows an increase in crude oil production by 280, 700 barrels per day (bpd) leading to a growth from the 1.104 million bpd recorded in August to 1.385 million bpd in September.

The Organisation of the Petroleum Exporting Countries (OPEC), which made this disclosure in its monthly oil market report, said crude oil production averaged 33.39 mbpd in September, an increase of 0.22 mbpd over the previous month.

The report however noted that crude oil output increased mostly from Iraq, Nigeria and Libya, while production in Saudi Arabia showed the largest drop.

The demand for OPEC crude in 2016 is estimated to stand at 31.8 mbpd, an increase of 1.8 mbpd over last year while in 2017, demand for crude is forecast at 32.6 mbpd, a rise of 0.8 mbpd over the current year.

The cartel added: “World oil demand growth in 2016 was adjusted marginally higher by 10 tbpd, to account for upward revisions in Organisation for Economic Co-operation and Development (OECD), Europe, Asia Pacific and Other Asia outpacing downward revisions in OECD America, Latin America and the Middle East.

“As a result, 2016 world oil demand growth currently stands at 1.24 mbpd, leading to total global consumption of 94.40 mbpd. In 2017, world oil demand growth will be relatively unchanged from last month’s MOMR at 1.15mbpd with total global consumption assumed at 95.56 mbpd.”

It disclosed that world liquids supply in September 2016 increased by 1.46 mbpd m-o-m to average 96.4 mbpd, and grew by 0.95 mbpd compared to a year ago.

According to OPEC, the share of OPEC in the monthly increase was only 15 per cent, while non-OPEC producers, including OPEC Natural Gas Liquefied (NGLs), added 1.24 mbpd.

This, it said, was due to some non-OPEC supply outages in second quarter coming back on stream, such as oil sands production that was shut down due to wildfires in Canada, a lower decline in the US following a rise in rig counts and well completion and the end of seasonal maintenance.

It added that non-OPEC oil supply in 2016 is estimated to see a contraction of 0.68 mbpd, a downward revision of 70 tbpd, to now average 56.30 mbpd.

“This was due to the downward adjustment of 135 tbpd in second quarter of 2016, mainly in Canada, Russia and the US, as well as an upward revision of 60 tbpd to the 2015 baseline, mainly coming from the US. In contrast, non-OPEC oil supply growth in 2017 was revised up by 40 tb/d to average 0.24 mbpd from the previous assessment, to settle at an
average of 56.54 mbpd, mainly due to new projects coming on stream in Russia.

“OPEC NGL production in 2016 and 2017 is forecast to grow by 0.16 mbpd and 0.15 mb/d, respectively, to average 6.29 mbpd and 6.43 mbpd. In September 2016, OPEC production increased by 0.22 mbpd to average 33.39 mbpd,” it added

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