OPEC report highlights mixed performance of global oil industry

The Organisation of Petroleum Exporting Countries (OPEC) Secretariat has launched the 51st edition of its Annual Statistical Bulletin (ASB).

The report shows that in 2015, world crude oil production increased by 1.75 million barrels/day (mb/d), or 2.4 per cent, compared with 2014, marking the second-highest increase within the last 10 years.

Among non-OPEC countries, United States saw the biggest yearly increase, growing by 0.72 mb/d, or 8.3 per cent; the highest production level since the early 1970s. Crude oil production during 2015 also increased in the United Kingdom, which saw growth of 0.10 mb/d, or 13.4 per cent, for the first time since 1999.

Similarly, Norway, which already reversed its downward trend in 2014, continued to increase in 2015 by 0.06 mb/d, or 3.7 per cent. OPEC crude oil production averaged 32.32 mb/d during 2015, increasing by 0.93 mb/d, or 3.0 per cent over 2014, the first surge in production after two years of decline.

In 2015, the top three crude oil producing countries were Saudi Arabia (10.19 mb/d), Russia (10.11 mb/d) and the United States (9.43 mb/d). Saudi Arabia displaced Russia in the top position for the first time since 2005.

In 2015, OPEC petroleum export revenues fell by 45.8 per cent from 2014 to $518.2 billion, marking the lowest level seen since 2005. Total OPEC posted a current account deficit of $99.6 billion in 2015 compared with a surplus of $238.1 billion in 2014.
Notably, the last time OPEC recorded a current account deficit was in 1998. Total OPEC exports declined in value by 29.1 per cent year-on-year (y-o-y) while total imports fell by 8.7 per cent y-o-y.

The report also drew attention to the fact that: “World oil demand averaged 93.0 mb/d in 2015, up by 1.7 per cent y-o-y, with the largest increases taking place in the Asia Pacific region, particularly India and China, North America, Western Europe, the Middle East and Africa.”

Total OECD oil demand grew soundly during 2015, while demand declined in Latin America for the first time since 2003.

OPEC oil demand remained robust during 2015 in the Middle East, Africa and Asia Pacific, while it declined in Latin America — gasoline, kerosene and distillates accounted for the bulk of growth. Distillates and gasoline accounted for around 56 per cent of total world oil demand and were on an increasing trend, while residual fuel oil requirements declined for another year. Gasoline dominated 2015 oil demand growth in Asia Pacific and North America, while distillates appeared robust in Western and Eastern Europe.

Total OPEC crude oil exports stood at 23.6 mb/d in 2015, up slightly from 23.2 mb/d in 2014. This increase represents 1.7 per cent growth y-o-y.

The bulk of OPEC crude oil was exported to the Asia Pacific region with a volume of 14.5 mb/d or 61.5 per cent. Significant volumes were also exported to Europe, which increased its imports from OPEC Member Countries to 4.2 mb/d in 2015 from 4.0 mb/d in 2014. North America imported 2.8 mb/d of crude oil from OPEC Member Countries, 10.6 per cent less than during 2014.

The report also drew attention to movements in total world proven crude oil reserves. In 2015, total world proven crude oil reserves stood at 1,493 billion barrels (bnb), increasing slightly by 0.1 per cent from the previous year’s level of 1,490 bn b.
The largest additions came from Angola, Venezuela and Islamic Republic of Iran, while declines were seen in Norway, the UK and Colombia. OPEC increased its proven crude oil reserves by 0.1 per cent to 1,211 billion b in 2015, maintaining its share of 81.2 per cent of total world crude oil reserves.

However, proven natural gas reserves declined by 0.3 per cent to approximately 202.0 trillion standard cu m in 2015. This decrease came on the back of high natural gas production and lower expenditures on exploration and development, mainly as a result of lower gas prices. Total world natural gas marketed production increased by 1.9 per cent in 2015 to reach 3.6 trillion standard cu m; increases occurred mainly in North America and the Middle East.

The publication which is an important source of data for stakeholders in the oil industry also ensures greater data sharing and  transparency about the industry and its many actors.  The ASB focuses on data from OPEC’s 13 Member Countries. It also provides statistical data and important information about non-OPEC oil producing countries.