Americas Will Take Brunt of Any Oil Output Cuts When Iran Returns
The Americas will take the brunt of any cuts in oil production as Iran increases output once international sanctions are lifted, according to a report by A.T. Kearney Inc.s oil and gas consulting practice in Dubai.
North, South and Central American oil production could fall 1.1 million barrels a day by 2020 because of higher costs as Irans output climbs, starting with an increase of 800,000 barrels a day next year, Chicago-based A.T. Kearney said in a report to be issued this week. Brent crude prices are seen trading at $45 to $65 a barrel next year, according to the report. The international benchmark was trading at $52.85 a barrel on Tuesday.
With Iran coming back on, theres the prospect this is going to be a longer-term lower price than weve seen before, Richard Forrest, A.T. Kearneys lead partner for energy, said in an interview in Dubai on Sunday.
If you look at where the production comes out, its North American shale and its offshore.
Iran is preparing to double output after international sanctions end, bringing as much as 1 million barrels a day of new supply into the market. In the U.S., crude production fell as New York oil prices dropped almost 50 percent in the past year on a glut. The U.S. government on Monday said June production fell to 9.3 million barrels a day, the lowest since January.
Iran could boost production by as much as 800,000 barrels a day in 2016, said Eduard Gracia, a principal at A.T. Kearney and co-author of the report. A.T. Kearney assumes Iran can boost output by an average of 6 percent a year from now until 2020 as long at it attracts foreign investment to help develop its fields. That pace would put Irans output of crude and condensate at 4.955 million barrels a day in 2020, or an increase of about 1.5 million barrels from today, according to A.T. Kearney.
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http://www.bloomberg.com/news/articles/2015-09-01/americas-will-take-brunt-of-any-oil-output-cuts-as-iran-returns
Wellstone ruled
(34,661 posts)Evidence of how and who rig the Commodities Trade. BTW,Iran has 53 million Barrels of Light Crude storied off shore ready to be sent to a Refinery near you. When ever there is a Kearney story,fasten your seat belts,oil will get Stupid.
leveymg
(36,418 posts)Will tend to drive the dirtiest product off the market first.