For the entire year the oil prices were two and half times less, than before beginning of decline, but the world oil company reduced the production by only 0.1%, reads the report of the Wood Mackenzie consulting company. It collects data about production and expenses of over 2000 fields around the world.
Since early 2015 production declined by about 100,000 barrels a day, due to low prices, but in quarter 4, 2015 aggregate supply at the oil market totaled 96.9 million barrels a day, according to the International Energy Agency (IEA). Majority of the capacities were suspended in Canada, US and North Sea, reads the report.
According to EIA, during the past week oil production in the US totaled 9.2 million barrels a day (maximum level for January since 1971), but in the beginning of 2015 – 9.1 million barrels It reached its peak of 9.6 million barrels in 2015, but stabilized at about 9.2 million since autumn.
Last year oil production in the non-OPEC member-states increased by 1.4 million barrels a day, according to EIA. EIA expects that this year it will drop by 600,000 barrels, if this happens the production decline will be the biggest since 1992.
It is easier for many companies to continue suffering losses, than spending millions of dollars to suspend production, for instance on the offshore shelf or in Siberia, to conservate wells and bring them back to operation as soon as prices go up. The Russian companies’ representatives have repeatedly said that this is not profitable for them, especially in winter time, writes Vedomosti newspaper.