Norwegian independent energy research firm, Rystad Energy has published its annual global energy outlook for 2020. The company expects potential reserves in Nigeria to fall further by 6 billion barrels.
Rystad in its report says that COVID-19 pandemic which is being experienced globally will affect the demand for oil and thus, put a lid on exploration in remote offshore areas, further reducing world’s recoverable oil by around 282 billion barrels.
“In Nigeria, after a decade long debate on oil policy reforms, potential reserves are expected to fall further by 6 billion barrels,“ the report said.
For North Africa, Rystad expects production to fall further by 4 billion barrels in Libya due to no imminent peace in the country, while in Algeria, shale exploration potential is expected to reduce by 7 billion barrels.
For North Africa the company expects production to fall further by 4 billion barrels in Libya due to no imminent peace, while Algeria Shale Exploration potential is expected to reduce by 7 billion Barrels.
“OPEC countries are expected to lose 21 billion barrels of reserves potential as the negative developments in Venezuela and Iran outweigh the increased strength and reserves potential of core OPEC countries in Arab Gulf region,” Head of Analysis, Per Magnus Nysveen said.
“Non-OPEC countries account for the lion’s share is lost recoverable resources with more than 260 billion barrels of undiscovered oil now more likely to be left untouched,” Nysveen added.
The firm foresees Saudi Arabia to be the clear winner of the OPEC+ agreement, and expects the oil-rich nation to add 25 billion barrels to future production.
Rystad Energy releases its annual outlook following the publication of the BP Statistical Review to provide an independent, solid and clear comparison of how the year has changed the world’s energy landscape.