IEA Key Gas & Oil Trends 2017
In 2017, OECD natural gas production grew by 2.4% compared to 2016. This growth was driven by increases particularly in OECD Asia Oceania (+17.7%), whilst the OECD Americas (1.1%) and OECD Europe (0.4%) saw moderate growth. OECD Americas continued to account for nearly three quarters of the total OECD natural gas production in 2017. Indigenous production in OECD Asia Oceania was almost 20 bcm higher in 2017 than in 2016, driven by growth in Australia (+20.5%), where production increased in Surat-Bowen and the Carnarvon basin, along with the beginning of production at the Wheatstone LNG project in October 2017.
Total OECD annual production of crude oil, NGL, and refinery feedstocks increased by 2.6% in 2017 compared to 2016. This trend was driven by the OECD Americas (+3.5%), whilst production decreased in OECD Asia Oceania (-8.7%) and OECD Europe (-1.1%). The United States experienced the highest growth, in absolute terms, despite the effects of Hurricane Harvey in August 2017, increasing production by 4.7% or 25 million metric tons (Mt). Canadian production also grew (+7.8%) on an annual basis, partially due to the recovery from the 2016 wildfires in Alberta. Meanwhile, Mexico experienced the largest decline (-9.6%) in production amongst OECD countries. OECD Europe’s production decline was driven by Norway (-0.8%) and the United Kingdom (-2.0%). Italy’s production recovered by 8.6% as the Val d’Agri field restarted production. The decline in OECD Asia Oceania’s production was primarily due to Australia, where production fell by 9.6% or 1.5 Mt.
Refinery gross output of total products within the OECD increased by 1.2% or 23.2 Mt in 2017 with all OECD regions contributing to this growth. OECD Europe’s output grew (+1.9%) despite the fire incidents at the Pernis refinery in the Netherlands and the Leuna refinery in Germany. Total gasoline was the only product category experiencing a decline (-1.2%) in the region. The OECD Americas’ growth (+0.8%) was led by the United States (+1.4%), in absolute terms, followed by Canada (+6.4%). Mexican output declined (-19.0%), partially due to the fire incident at the Salina Cruz refinery, while Chile’s output remained relatively flat (+0.3%). Growth in OECD Asia (+0.8%) was driven by Korea (+5.2%), where notably the output of naphtha increased by 15.7%. Japan’s reduced output (-2.5%) was primarily due to a 15.9% decline in residual fuel oil output. Source: International Energy Agency (IEA), Key Natural Gas Trends 2017, Key Oil Trends 2017, 4/12/2018.
TCGR Note: Despite the stories, we have also reported about the net increases in renewable energy taking a larger share of energy consumption worldwide. It is interesting to highlight, probably based on the worldwide positive economic growth and outlook, the total production of crude oil, NGL and feedstocks in 2017 increased +2.6% compared to 2016. However, note the overall OECD decline in gasoline by -1.2%.