Malaysia’s oil output will continue to grow: Analyst

Malaysia’s oil output is forecast to continue to grow in the long-term after a series of world-class deepwater discoveries, an analyst said.

“In stark contrast to the outlook at the turn of the last decade, when production declines from core legacy fields were a major concern, a series of world-class deepwater discoveries have set the scene for a resurgence in output,” said Kate Broughton, Head of Oils Research at Wood Mackenzie, an international energy and life sciences consultancy firm.
Globally, Wood Mackenzie’s field-by-field research shows strong supply growth will prevail in the short term, with total global capacity forecast to grow steadily between 86.3 million barrels per day (bpd) in 2006 and 96.7 bpd in 2010.

In a statement today, Broughton said that non-Opec peak oil — or the point of maximum production of oil — will not occur before 2014.

Disputing views that any pinnacle is within sight, Wood Mackenzie’s in-depth field-by-field research provides evidence that strong supply growth will prevail in the short term.

Barring unexpected disruptions to production, total global capacity is forecast to grow steadily from 86.3 million barrel per day (bpd) in 2006 to 96.7 million bpd in 2010, she said.

The picture for the Asia Pacific region was, however, less bullish with India being the only country to make it to the top 10 contributors to non-Opec oil and natural gas liquids supply growth to 2012.

Like Malaysia, Vietnam and New Zealand, India’s production will likely see growth in the short term but this will not be enough to reverse the region’s gradual decline in output, she said.

Business Times