Equinor predicts worldwide oil demand to hit the peak by 2027 or 2028, two to three years earlier than their previous estimate due to the ongoing pandemic. The company expects oil demand to get back to pre-corona levels of about 100 million bpd in the next five years and drop to 88 million bpd by 2050. The oil demand peak is dependent on various factors including exploration and development of new resources by companies.
The crude processed in China’s refineries in October reached 59.82mt, which equals 14.09 million bpd, surpassing the previous monthly record of 14.08 million bpd set in June. The total crude imports in October stood at 42.56Mt, even as domestic output reached 16.41Mt, taking the total production in the country to 58.97Mt. China has been storing huge amounts of crude stockpiles since the Covid-19 outbreak.
The oil output from shale formations in the US is projected to fall by roughly 139,000 bpd next month, to 7.51 million bpd, hitting a six-month low. The shale production drop, which is predicted to drop for the third month in a row, is said to be the highest since May. Oil production was reduced in May to compensate for the worldwide demand slump triggered by the Covid-19 pandemic.
India’s state-owned oil producer ONGC reported that its spending dropped to $2.56bn in the initial six months of FY 2021, a 7% decline from the corresponding period last year. However, the company wants to make up for losses incurred due to Covid-19 pandemic and its capital expenditure for the ongoing fiscal is projected to reach $4.37bn.