Espen Erlingsen, head of upstream research at Rystad Energy, said, “Our cost of supply curve for liquids indicates that back in 2014, an oil price of close to US$100 per barrel was required to produce 100 million barrels per day (bpd) in 2030. By 2018, the required oil price was closer to US$55 per barrel, and in 2020, it dropped to US$45 per barrel. However, low activity levels in 2020 and 2021, due to the Covid-19 pandemic and a general focus on the energy transition, led to a downward adjustment in the overall liquid potential. In 2020, the potential 2030 supply was revised down to about 116 million bpd, and in 2021 we revised it further to about 113 million bpd. “As the theoretical supply in 2030 exceeds the demand trajectory by more than 10 million bpd, climate policies should be more demand-focused rather than supply-focused.

Source: The North Africa Journal November 22, 2021 11:31 UTC