Mideast Oil Consumption Could Increase Significantly Over Next Five (5) Years -- October 19, 2015

The Bakken: The number of wells going to DUC/DRL status continues to be quite impressive -- if that's the right word. Nine wells came off the confidential list over the weekend/today and seven of them will go to DUC/DRL status.

The Mideast: This is also interesting. Tweeting now: Arab oil consumption to increase to 17.3 mil b/d by 2020, says new study by Organization of Arab Petroleum Exporting Countries. This is not a data point that I track but it seems consumption to increase by 17 million bopd in the Mideast goes a long way in explaining why Saudi Arabia has stepped up their drilling program (and don't have a whole lot to show for it, yet). Here's more of the story, as reported by PipelineMideast:

Energy consumption in Arab oil producing countries is expected to grow by as much as 4.9 per cent a year by 2020, according to a new study by the Organization of Arab Petroleum Exporting Countries.

At the lower end of the estimate – in a low growth scenario for OAPEC member countries, the organization expects energy consumption to be at around 3.2 per cent in the study period.

In its 2012 annual report, however, OAPEC estimated the annual rate of growth of energy consumption in OAPEC member countries was 5.3 per cent during the 2009- 2012 period.

The report by the Kuwait based organisation found that daily energy consumption would be between 15.4 to 17.3 million barrels of oil equivalent (boepd) by 2020, compared to 12.4 million boepd in 2013.

Saudi has not shown much increase in production for quite some time. Sure, they are hitting "new records" but the bar hasn't been rising all that much, certainly not enough to come anywhere close to several million more bopd. Currently about 12.4 million boed (most recent figures available), it seems quite a stretch to get to 17.3 million boepd by by 2020.

Be that as it may, one would assume that similar growth will be seen outside the Mideast.