Oil Production Expected To Increase And Lower The Price Per Barrel
Crude oil production is expected to increase in 2020, potentially lowering oil prices, according to The New York Times.
Oil production will continue to grow even though there is less global demand for natural resources amid climate change concerns. The influx of oil is not coming from the usual producers, but rather from Brazil, Canada, Norway, and Guyana.
The expected increase in oil production might be why Saudi Arabia's massive oil giant, Aramco, gave the green light for its initial public offering on Sunday. Aramco's IPO is expected to be the largest initial stock offering in history. Decreasing prices on barrels of oil could hurt Aramco's profit which might be the reason why they are going public now.
Brazil, Canada, Norway, and Guyana are expected to add about a million barrels of oil daily to the market in 2020 and nearly another million in 2021. The current world output of crude oil is about 80 million barrels a day.
Climate change is becoming an increasing agenda amongst nations concerned about the future of the planet. For climate change to be controlled, some nations have been regulating drilling sights. The increase in the production of oil negates these regulations and could potentially increase the use of oil since it will be more cost-efficient.
There is an expected increase in the production of oil into 2020 amid concerns about climate change and the future of our planet.