EnergyInsights.net

Global Oil Production

28-02-2005 2:25 pm

Oil production globally has been growing over the last 50 years, apart from a drop in the early 70s and again in the early 80s after oil prices spiked upwards. Ths indicate the historical sensitivity of consumption to oil price. OPEC production is seen as the swing producer - increasing to capture spare demand, but decreasing if oversupply drives prices down.

Most region's oil production has increased over the years, particularly Europe (North Sea and Russia) and Asia Pacific. North Amercia production has been more constant. Middle East (mainly OPEC production) has fluctuated - acting as a "swing prducer" - generally increasing during periods of high oil price and decreasing during period of low oil price.

Crude Oil Price: OPEC and Middle East production dropped from 1980 until 1985 as OPEC attemped to support oil prices - however, in 1986, Saudi Arabia flooded the market and drove prices down to below $8/bbl for a few week in an attempt to curtain non OPEC developments and production. It was some 3-4 years before prices started to recover, but in US real terms, prices are still well below the levels seen in 1980 and at approximately the late 1970s level. In addition, GDP and industry is far less reliant on oil - oil constitutes far proportionally within the overall GDP of the USA - the US GDP has also grown significantly since the early 1980s - mianly service sector growth.

Gross oil sales per region - this is the summation of the oil produced times the price of the crude in the given year.

Increases and decreases in oil production in 2006 (from June 2007 data)