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05/03/2018 - 12:56hs

Oil from US, Brazil to meet demand

As per an annual report from the International Energy Agency (IEA), increasing output from those two countries, plus Canada and Norway, can keep the global market supplied for the next three years.

São Paulo – Increasing oil output from the United States, Brazil, Canada and Norway can meet global demand over the next three years, catering to ever-stronger needs for petroleum until 2020. However, bigger investments will be required in order to increase production after that, according to the annual report on oil markets released this Monday (5) by the International Energy Agency (IEA).

Over the next three years, rising United States putout will cover 80% of additional global demand, with Canada, Brazil and Norway meeting the remainder of global needs, as per the Oil 2018 report.

The report points out that despite the dropping costs, further investment will be required to drive a hike in supply after 2020. The oil industry is still recovering from an unprecedented drop in investment in 2015-2016, and the IEA sees little to no investment outside the United States in 2017 and 2018.

Driven by economic growth in Asia and by a resurgent US petrochemical industry, global demand for oil should have increased by 6.9 million barrels per day (mb/d) in 2023, to 104.7 mb/d.

Virtually all of the hikes in output from the Organization of Petroleum Exporting Countries (OPEC) originate in the Middle East. Venezuela’s output dropped by more than half over the past 20 years and is likely to keep declining.

*Translated by Gabriel Pomerancblum

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