At the G7 meeting last week the world’s political leaders agreed to phase out the use of fossil fuels by the end of this century. The G7 countries include Canada, France, Germany, Italy, Japan, the UK and the US.

BP issued its Statistical Review of World Energy 2015.  The highlight was the fact that in 2014 the US overtook Saudi Arabia as the world’s biggest crude oil producer and surpassed Russia as the world’s largest producer of both crude oil and natural gas.

The International Energy Agency continues to be optimistic about the world crude oil industry, saying in its most recent Oil Market Report that global demand for oil will be up by 1.4 million barrels per day this year to 94 million. This increase is expected to be caused by lower prices and a global economic recovery. Some question the IEA’s optimism in light of slowing crude oil and shale oil production.

US oil production is expected to increase to 9.43 million barrels a day this year, the most since 1972. However, due to declining production over the rest of this year and next, total output next year is forecast to average only 9.27 million barrels a day.

The US state of North Dakota reported that its shale oil production in April fell by 20,488 barrels per day from March. This is down 59,000 b/d from the high in December and the fourth consecutive month of declining production.

In the UK North Sea, two-thirds of the companies working in the region have been forced to shelve oil projects and half have been forced to cut staff in the depressed crude oil market.

May crude oil imports in China declined almost 11% from May of 2014, the steepest drop in the last 18 months. With oil prices higher now, Chinese refiners may be taking the less expensive oil from the country’s storage reserves thereby lowering requirements for imports.

In Russia, state oil producer Rosneft will be forced to postpone drilling a second well in the Kara Sea for at least two more years as a result of Western sanctions over the Ukraine crisis.  The delay is a blow to President Vladimir Putin’s goal of increasing oil output and securing Russia’s energy dominance by exploiting the Arctic.

Offshore Cyprus, a group of Israeli energy partners called Delek Group said evaluation of drilling data led it to believe there may be as much as 6 trillion cubic feet of natural gas in the entire Cyprus A region, one of the third largest fields ever discovered in the Levant basin.

Mexico’s Pemex has announced its biggest discoveries in five years, unveiling new shallow water crude oil fields in the southern Gulf of Mexico, off the states of Tabasco and Campeche, that could produce 200,000 barrels per day by mid-2018. The total proven, probable and possible reserves of the fields could be as high as 350 million barrels of crude-oil equivalent. The new finds include three fields of light crude and one of heavy crude.

The growth of Canada’s heavy and light crude oil production by 2030 has been revised down 1.1 million barrels per day, primarily due to the near 50% drop in global oil prices in the past several months.. Output by 2030 is projected to be 5.3 million b/d, compared with a forecast of 6.4 million b/d made last summer.

According to the US Energy Information Administration,  coal consumption by that country’s electric power utilities will total an estimated 792.9 million tons in 2015, the lowest amount since 1991.

Date from the UK Office of Gas and Electricity Markets shows there are currently just over 5000 onshore wind turbines in the UK, with reports for plans in the pipeline for 3000 more. Onshore wind delivered 18 GWh (gigawatt hours) of power in 2014 or 5.6% of the country’s electricity.

According to the Renewable Energy Policy Network for the 21st Century (REN21), at the end of 2014 renewable energy comprised an estimated 27.7% of the world’s electric power generating capacity, enough to supply an estimated 22.8% of global electricity demand. China, the US, Japan, the United Kingdom and Germany have invested the most in renewable energy projects. While renewables now account for about 28% of the world’s electricity-generating capacity, they still account for only 10% of how we heat and cool buildings and fuel our means of transportation.

 

with h/t Tom Whipple

Tags: , , , , , , , , , , , , , , , , ,