Regular Article
Is the oil industry able to support a world that consumes 105 million barrels of oil per day in 2025?
1
Equinor, Forusbeen 50, 4035 Stavanger, Norway
2
IFP Energies nouvelles, 1-4, avenue de Bois-Préau, 92852 Rueil-Malmaison Cedex, France
3
The French Institute for International and Strategic Affairs, (IRIS), 75011 Paris, France
4
EconomiX-CNRS, University of Paris, Nanterre, France
* Corresponding author: emmanuel.hache@ifpen.fr
Received:
10
October
2019
Accepted:
8
November
2019
This paper investigates the significant risk of a supply crunch in the oil market by 2025 and beyond, given current pace of investment and growth of world demand. We focus particularly on today’s upstream sector and the challenges it faces in meeting the ever-increasing demand for oil. We then study different production scenarios for U.S. unconventional oil potential and draw conclusions on its potential capability to offset the weakening context of conventional oil supply (declining production, declining discoveries, insufficient investment, persistent geopolitical risks and environmental pressures). We conclude that with growing oil demand, the probability of an oil crunch by 2025 is far from null.
© P. Hacquard et al., published by IFP Energies nouvelles, 2019
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
