First drop in US crude oil production since 2008.
World crude oil production increased slowly because of low international oil prices and several years of low capital investments in the upstream sector.
Crude oil production has been driven upward mainly by Middle East producers, of which Saudi Arabia accounted for most of the rise, and Russia that both rely on oil revenues to support their economic development.
Iran’s production jumped by an impressive 16% as a result of the lifting of international sanctions.
Conversely, low investment over the two past years in the USA impacted shale oil development, (which previously helped drive low international oil prices), has led to lower production levels. Oil production also dipped in China as well due to the oil price environment.
Venezuela’s crude oil output plunged to its lowest level since 2009 due to the domestic economic and social crisis, while Mexico's production has continued to fall and reached its lowest level since 1980.
Nigerian oil output dipped due to attacks on infrastructure within the country.
Based on its 2016 data for G20 countries, Enerdata analyses the trends in the world energy markets.Download the publication
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The Iranian state-held oil firm National Iranian Oil Company (NIOC) aims at increasing the production capacity of its oil fields by 400,000 bbl/d, fitting into the Iranian government's objective of raising the domestic oil production to 4.2 mb/d. However, Iran is opposed with Saudi Arabia and Russia's proposition to raise OPEC's crude oil production by 1.5 mb/d in the third quarter of 2018, and is likely to veto any significant oil production increase across the OPEC. Iran, which was exempted from any production cut in the 2017 agreement, benefited from higher production and rising oil prices. The country will maintain its position to keep OPEC oil production and exports at their current levels.
The new European Cross-Border Intraday (XBID) market has come online after several years of development and will now enable to increase the number of of power exchanges between the European transmission system operators (TSOs) and the nominated electricity market operators (NEMOs). The aim of the project is to create an integrated European intraday market and ensure the continuous trading of power across Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Latvia, Lithuania, Norway, The Netherlands, Portugal, Spain and Sweden. Most of the remaining European countries are expected to join it later in 2019 for the second go-live. A total of 31 TSOs and 15 power exchange back the XBID market, which is designed to handle up to 400,000 trades per day.
The giant offshore gas field Zohr in Egypt will raise its production capacity to 1.75 bcf/d (49.5 mcm/d or 18 bcm/year) by August 2018. The production ramp-up is scheduled to continue so that the field's output reaches a plateau output of 2.7 bcf/d (28 bcm/year) by mid-2019. Once reached, this level will enable the country to save an estimated US$1bn/year in gas imports and achieve self-sufficiency from natural gas by 2019.
Saudi Arabia and Russia will ask the Organization of the Petroleum Exporting Countries (OPEC) to hike crude oil production by 1.5 mb/d in the third quarter of 2018. In November 2016, Russia and the OPEC jointly decided to cut their output by 1.8 mb/d in order to prop up global prices and production levels were set for each member country: Saudi Arabia agreed to limit its crude production by nearly 486 kb/d to 10.058 mb/d, while Iraq, the second largest producer among OPEC, agreed to cut its production by 209 kb/d.