International data analysis and consulting firm GlobalData has identified oil recovery activities in Guyana’s maritime space, moving forward as a factor likely to push South America past North America by 2024.
Last week international oil and gas journals cited GlobalData research disclosures that also highlighted various oil recovery projects in neighboring Brazil that had already secured final investment decisions and are now less likely to face deferral challenges. In contrast, the GlobalData study noted that several key U.S. offshore projects have already experienced COVID-19-related delays while recovery initiatives in Mexico have experienced a sharp decline. The GlobalData study is attended by a comment from one of its Senior Analysts who is quoted as saying “delays and pending approvals will not help North America reverse its decaying trajectory, as production is expected to fall 15 % over the period 2022- 2024. To improve the region’s trend, a combination of factors not limited to better market pricing will be required to support project economics, better recovery for existing projects and broaden the resource base especially in Wales. Mexico. “The source also states that” projects in the US and Canada have been bottled by pipeline capacity. “
GlobalData says that, mainly due to the positive trend in South America, especially Guyana and Brazil, oil production for the region is expected to increase from 8.65 million barrels of oil per day to 9.15 million barrels in 2024.
On Guyana’s projected contribution to South American oil production increases, a GlobalData spokeswoman says that “Guyana’s ultra-deep water projects in the Guyana-Suriname Border Basin have cost oil prices as low as $ 23 / bbl, and short-term production is expected doing so grow 10 times by 2024 projects like Liza Phase 2. ”
Regarding Brazil’s projected contribution to the sharp spiral in hemispheric oil production, GlobalData states that Brazil’s “pre-salt (oil recovery) rich region has survived the industry’s decline mainly due to the robust economics of its current and upcoming projects – high productivity, wells high quality raw. ”He adds that projects in this region have cost recovery oil prices as low as $ 35 a barrel (/ bbl), compared to Brent’s current average price of $ 40 / bbl. In addition, he says the Brazilian state-owned oil company, Petróleo Brasileiro, has “gradually simplified its portfolio to focus on exploration and production activities in the pre-salt tier, while diverting non-core assets in areas on the land, shallow water and saltwater. . ”
Last week, another GlobalData report highlighted what it says are the closure of multiple oil refineries “across Asia and North America, some of which, he said, will be permanently closed. The Research entity also said that while COVID vaccine forecasts had sparked a measure of optimism among traders that fuel demand could come back on 2021, it was felt that a potential vaccine was unlikely to affect oil supplies by January next year since and expected for a coronary virus immunization program to be introduced over a period of time.