Global oil supply falls in 2017 driven by OPEC’s output cuts

Global demand for crude oil increased in 2017 compared to the previous year, while the total world production declined on a year-on-year (YoY) basis driven by decrease in output by OPEC’s 14 member countries, according to data from Organization of Petroleum Exporting Countries (OPEC) annual statistical bulletin.

The bulletin, released on Thursday, provided detailed and comprehensive time-series data on many different aspects of the global petroleum industry, including production, demand, imports and exports, as well as exploration, production and transportation activities.

The report also provides updated statistical data on the oil and natural gas activities of each of OPEC’s 14 member countries.

Here are some of the highlights from OPEC annual bulletin

1) World crude oil production declined by 701,000 barrels per day (bpd), or 0.9 percent, in 2017 compared to 2016. Total production last year stood at 74.69 million bpd, marking the first yearly decline since 2009.

2) OPEC-14 crude oil production fell YoY by 926,000 bpd, or 2.8 percent, while crude production in non-OPEC countries registered gains.

3) Global oil demand averaged 97.20 million bpd in 2017, up by 1.7 percent YoY. The largest increases was recorded in Asia and Pacific region (particularly China and India), Europe and North America.

4) Total crude oil exports from OPEC member countries averaged 24.86 million bpd in 2017, declining by 406,000 bpd, or 1.6 per cent, as compared to 2016.

5) The bulk of crude oil from OPEC states was exported to the Asia and Pacific region – amounting to 15.56 million bpd or 62.6 percent. Europe’s imports from OPEC states increased from 4.4 million bpd in 2016 to 4.64 million bpd in 2017.

6) North America imported 3.21 million bpd of crude oil from OPEC: 82,000 bpd, or 2.5 percent, less compared to 2016 volumes.

7) Total world proven crude oil reserves stood at 1,483 billion barrels at the end of 2017, decreasing slightly by 0.4 percent from the level of 1,489 billion at the end of 2016.

8) Total proven crude oil reserves in OPEC countries decreased by 0.3 percent to 1,214 billion barrels at the end of 2017.

9) Total world proven natural gas reserves rose by 0.2 percent in 2017 to approximately 199.4 trillion standard cubic meters. OPEC’s proven natural gas reserves stood at 95.95 trillion standard cubic meters, unchanged from the level of the previous year.

10) World refinery capacity expanded by 104,000 barrels per calendar day (bpcd) to stand at 96.93 million bpcd during 2017, mainly supported by additions in the Asia and Pacific region, particularly China and India.