New decline in refined product output in Venezuela in 2017.
As in 2016, the 2017 growth was driven by Asia – China and India accounted for more than 60% of the increase in refined oil products production – and by the Middle-East, especially Saudi Arabia and Iran. Production also rose in South Korea (dynamic demand) but contracted in Japan (declining oil product consumption).
In the United States, the largest producer of petroleum product worldwide, oil product production rose for the fifth year in a row and reached a record in 2017. It also grew in Canada, but fell in Mexico and Venezuela, where crude oil production contracted.
Production remained stable in Russia.
Petroleum product production rebounded in the European Union, in line with rising consumption, despite recent refinery closures over the past years in Europe combined with the willingness of Middle East countries to refine crude oil locally and low refining costs in North America.
Based on its 2017 data for G20 countries, Enerdata analyses the trends in the world energy markets.Download the publication
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According to China National Nuclear Corporation (CNNC), the Sanmen-1 AP1000 nuclear reactor project being built in the Zhejiang province of China has completed 168 hours of full power continuous operation and is now deemed to enter commercial operation. A second reactor at the Sanmen site achieved hot testing phase in February 2018 and should be commissioned by the end of the year. With the commissioning of Sanmen-1, CNNC now has a total of 19 operational nuclear reactors, with an installed capacity of 16,716 MW.
According to the United States Energy Information Administration (EIA), members of the Organization of the Petroleum Exporting Countries (OPEC) benefited from a 29% increase of their net oil revenues in 2017 to US$567bn compared with 2016, thanks to both the increase in crude oil prices and in net oil exports. The EIA predicts that these revenues are likely to continue to ramp up in 2018 to US$736bn (+30%), following the annual crude oil prices trends. However, they could decline starting from 2019, by 2.4% to US$719bn, driven mainly by lower prices and by slightly lower OPEC production and exports to a lesser extent.
Russian state-run energy company Gazprom is discussing with the Hungarian government regarding the delivery of future gas supplies, since current gas supply agreements expire at the end of 2019. The discussion will also include other issues such as the development of the Hungarian gas transmission system and the prospects of storing Gazprom's fuel in Hungarian underground gas storage (UGS) facilities.
US-based LNG project developer Cheniere Energy has signed a sales and purchase agreement with the global trader Vitol, under which Vitol agreed to purchase 0.7 Mt/year (roughly 0.95 bcm/year) of LNG from Cheniere on a free on board basis for a term of approximately 15 years beginning in 2018. The contract's purchase price is indexed to the monthly Henry Hub price and includes a fee.