The suspension of explosion and production could be behind low supply of oil, says a report produced by Scotland-based analysis group, Wood Mackenzie.
The report predicts that the global oil market could face a supply shortfall of 4.5 million barrels a day within two decades. Bearing in mind that there is a surplus of around 2 million barrels a day, fears of an impending crisis might not be exaggerated.
Patrick Gibson, director of global oil supply research at Wood Mackenzie, warns: “Unless exploration results start to improve significantly, continued supply growth will become unsustainable.”
Analysts predict that oil prices are fast heading towards the $50 per barrel. An plausible explanation behind this is the pact that Organisation of Petroleum Exporting Countries (OPEC) reached to suspend production.
To arrive at the results, Wood Mackenzie surveyed more than 7,000 conventional oil fields discovered since 2000. The findings revealed that that the volume of liquids found each year more than halved in the last decade as wells turned up less crude than anticipated. In addition, volumes dropped from roughly 19 billion barrels in the 2008-11 period to around 8 billion barrels between 2012 and 2015.