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EIA reveals oil production forecast for Azerbaijan

14 April 2016 18:19 (UTC+04:00)
EIA reveals oil production forecast for Azerbaijan

By Fatma Babayeva

The U.S. Energy Information Administration (EIA) forecasted oil production of Azerbaijan not to change during 2016-2017.

In its short-term energy outlook released in April, the agency predicts oil production in Azerbaijan to amount to 0.81 million barrels per day in 2016, 0.8 million barrels per day in 2017 compared to 0.86 million barrels per day in 2015.

Oil production in the country will amount to 0.8 million barrels per day during the second quarter of 2016, 0.81 million barrels per day during the third quarter and 0.84 million barrels per day during the last quarter of this year, according to the EIA.

The lowest level of oil production that agency expects in Azerbaijan is 0.78 million barrels per day during the fourth quarter of 2017.

For the first quarter of next year, EIA forecasts oil production to be 0.83 million barrels per day, for the second quarter 0.81 million per day and for the fourth quarter 0.79 million barrels per day.

The main volume of the oil produced in Azerbaijan is extracted from Azeri-Chirag-Guneshli offshore fields which is called Azeri Light crude.

The proven oil reserves in Azerbaijan amounted to seven billion as of early 2015 according to BP.

The State Statistics Committee of Azerbaijan reported that 41.69 million tons of oil and gas condensate were produced in the country in 2015 which is 0.8 percent less than previous year.

Meanwhile, EIA forecasted that it expects OPEC’s crude oil production to grow to 32.8 million barrels per day in the second half of 2017.

OPEC oil production will amount to 32.21 million barrels per day in 2016 and 32.71 million barrels per day in 2017, EIA expects.

The maximum level of production in OPEC is expected by the EIA to be seen in the third quarter of 2017 (32.81 million barrels per day).

Currently, the official quota of OPEC stands at 30 million barrels per day.

Total oil production by the cartel’s member states amounted to 32.38 million barrels per day in February which is 175 000 barrels per day less than the production in January 2016 according to the latest report provided by OPEC.

Oil-producing countries are planning to hold a meeting in Doha on April 17 where they will discuss the issue of freezing oil production at the level of February in order to stabilize oversupplied market and to push prices up.

Azerbaijan also announced that it will join the oil freeze initiative of oil producers.

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Fatma Babayeva is AzerNews’ staff journalist, follow her on Twitter: @Fatma_Babayeva

Follow us on Twitter @AzerNewsAz

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