Leading industry forecaster Douglas-Westwood believes that the OPEC-led production reduction campaign has already led led to significant changes to the near-term outlook for the oil & gas sector worldwide – with a strong likelihood that there be a major undersupply situation occurring by 2020.

Releasing its first World Drilling & Production Market Forecast of 2017, Douglas-Westwood forecast that the oil market will be undersupplied in early 2020s regardless of any OPEC adjustments .

The company’s studies also tips:

  • A balanced market in 2017, likely oversupply in 2018
  • Offshore oil production is expected to peak in 2019
  • Undersupplied market in early 2020s regardless of OPEC adjustments
  • Guyana and Uganda now added to the report

D-W says the country analysis within the report shows major changes to the forecasts with OPEC’s member nations as well as certain non-OPEC countries also participating in production cuts. Additionally, Libya’s outlook has been upgraded after its National Oil Company gained control of key ports. In the USA, onshore production is set to resume growth in 2017 due to improving investor confidence in the country’s shale plays.