The Organization of the Petroleum Exporting Countries (OPEC), which is the permanent intergovernmental organization of 14 oil-exporting developing nations, recently published the World Oil Outlook 2017 (WOO 2017). This publication contains a detailed report on the shifting dynamics of the oil industry and the connections to the global economy. Also, it includes topics like the “evolving technologies, policies, climate change, energy efficiency and sustainable development, as well as the shifting energy mix.” This is the main reason why WOO 2017 is considered to be one of the means through which the OPEC “provides a comprehensive analysis and oil market data to energy stakeholders, as well as to the general public.”
World Oil Outlook 2017– What you need to know:
According to Mohammad Sanusi Barkindo, the Secretary General of OPEC with effect from 1 August 2016, the publication of the World Oil Outlook is considered “a prime example of our support for data and data analysis sharing, as well as openness and transparency.”
In terms of energy policies and technological development, the WOO report showed how these two assets could “continue to push energy efficiency and emission reduction, with the publication assuming “an evolutionary development” in the long-term.”
From a regional perspective, the 2017 report projects a dynamic shift of oil demand, as it expected “the road transportation sector with the OECD to decline by 7.1m b/d, while developing countries are anticipated to see growth of 12m b/d. “
Dr. Ayed S. Al-Qahtani, the new Director of Research Division, explained that “the expanding global fleet outweighs improving efficiency and the increasing penetration of electric vehicles in developing countries, but not in the OECD.”
“The fastest growing energy type is anticipated to be renewables,” specifically wind, photovoltaic, solar and geothermal energy. These sources have reported “an average annual growth rate of 6.8% over the forecast period.”
The World Oil Outlook 2017 provides vast information regarding oil consumption behaviour and forecasts the dynamics of future energy sources. However, it can be interpreted from the report that the oil industry appears to have been unstable since 2014, due to OPEC’s market share strategy which is undergoing some agreement reductions. These reductions in oil prices in the global market have lead to political and economic crises all around the world, such as the cases of Venezuela, Nigeria, and Libya.
For this reason, OPEC’s World Oil Outlook (WOO) manages to present valuable information about possible future challenges and opportunities for the oil industry. Additionally, it provides the platform for global leaders to pay close attention to the changing patterns in oil global trade flows.
Hopefully, the global challenges will be assumed in a far more responsible, informed, and intersectional manner in favor of the industry stakeholders as well as all the individuals in a society.