Oil Demand to Reach 100 Million BOPD Much Sooner than Projec

[cmm3rd]

Oil Demand to Reach 100 Million BOPD Much Sooner than Projected: OPEC Chief
in Closing Bell Story / Crude Oil News / Energy News by— Oil & Gas 360
September 6, 2018

From Reuters

CAPE TOWN (Reuters) – World oil consumption will reach 100 million barrels per day (bpd) later this year, hitting that level much sooner than previously forecast, OPEC’s secretary-general said on Wednesday.

Mohammad Barkindo also told an energy conference in South Africa’s Cape Town that a stable environment was needed to encourage oil industry investment to meet the rising demand.

“The world will attain the 100 million barrels a day mark of consumption later this year, much sooner than we all earlier projected. Therefore stabilizing forces which create conditions conducive to attracting investments are essential,” he said.

“The priority … is on ensuring stability is sustainable, spreading confidence in the industry and encouraging an environment conducive to the return of investments,” he added.

The Organization of the Petroleum Exporting Countries with Russia and other producers have implemented a deal since January 2017 on cutting 1.8 million bpd from output to prop up prices that fell below $30 a barrel in 2016 from over $100 in 2014.

On Wednesday, benchmark Brent LCOc1 was trading at just below $78.

Barkindo said oil industry confidence was returning and OPEC was exploring ways of institutionalizing cooperation between OPEC and its non-OPEC allies on their production levels.

Barkindo also told reporters at the conference that global trade disputes could hurt energy demand in future, although he said he was hopeful the uncertainty would lift soon.

U.S. President Donald Trump’s tariff threats against China, the world’s second-biggest economic power, have caused jitters in markets across the world.

“The trade disputes that are emerging among some of the leading partners in the world will eventually hurt (global economic) growth and, by extension, demand for energy,” he said.

“But we are confident … these parties will be able to overcome some of these challenges,” Barkindo said. “We are hopeful we will be able to overcome this cloud of uncertainty regarding trade as quickly as we can in order to mitigate the contagion.”

[dan_s]

This is definitely an industry of BIG NUMBERS.

This is why the market's reaction to EIA's weekly WAG's of inventories going up or down by a few million barrels is ridiculous.

Demand for hydrocarbon based liquid fuels and feedstock is RELENTLESS. Demand goes up by ~1.5 million barrels PER DAY year after year after year. The only pullback in demand was 2008, caused by the global financial crisis. Why? Because more humans = more demand for energy.

Earth's human population is growing by 78,000 PER DAY
See for yourself here: http://www.worldometers.info/world-population/


Energy consumption (most of which comes from oil, gas and coal) is directly tied to human standard of living. There is NOTHING on the near-term horizon that will slow the relentless growth of demand for oil. EV's are only making a tiny dent in oil demand. Again, this is an industry of BIG NUMBERS and most people cannot grasp the size.

BTW there is NO WAY that U.S. shale oil can satisfy global demand growth on its own.