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World energy consumtion 1970 2020

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Oil Market OutlookGuy Caruso Administrator Energy Information Administration November 30, 2004 Houston, TX... Crude Oil Price ProjectionsShort-Term Energy Outlook, November 2004 West Tex

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Oil Market Outlook

Guy Caruso Administrator Energy Information Administration

November 30, 2004 Houston, TX

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Major Events and World oil Prices

Iran-Iraq War Saudis abandon

"swing producer" role

Iraq Invades Kuwait

Operation Desert Storm

Asian economic crisis;

Iraq oil-for-food

OPEC cutbacks

9/11 attacks

Venezuela Unrest Strong Demand Growth

Oil prices fluctuate widely over past three decades

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Crude Oil Price Projections

Short-Term Energy Outlook, November 2004

West Texas Intermediate

Crude oil prices rise again in 2004

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World Oil Demand Growth

World oil demand growth currently surging at very high rates

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U.S Petroleum Products Demand Growth

(Change from Year Ago)

* Sum of distillate and residual fuel.

U.S demand growth likely to slow in 2005 under high prices

Short-Term Energy Outlook, November 2004

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Non-OPEC Supply (Change from Year Ago)

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Yearly OPEC Crude Oil Production

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World Oil Spare Production Capacity

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OECD* Commercial Petroleum Stocks

Previous 5-year min/max range

Projection

OECD oil stocks remain in low range

Short-Term Energy Outlook, November 2004

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U.S Commercial Crude Oil Stocks

Monthly

US crude oil stocks likely to remain tight (again) this winter

Short-Term Energy Outlook, November 2004

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Million Barrels per Day

The World’s 15 Largest Oil Suppliers, 2004

Saudi Arabia and Russia remain leading world oil suppliers Source: EIA, Short-Term Energy Outlook (October 2004)

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1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 0

50 100 150 200 250 300

World Marketed Energy Consumption by

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1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 0

50 100 150 200 250

Oil remains the dominant energy source through 2015 Source: EIA, International Energy Outlook 2004

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World Energy Use in the Transportation

Sector, 2001-2015

Transportation sector remains large share of total oil use Source: EIA, International Energy Outlook 2004

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World Oil Prices in Three Cases, 1970-2015

0 10 20 30 40 50 60 70

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OPEC EE/FSU Other

World Oil Consumption and Production

2001, 2010, and 2015

Developing Asia drives oil consumption growth Source: EIA, International Energy Outlook 2004

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Middle East OPEC Non-Middle East OPEC Non-OPEC

U.S Dependence on Imported Oil

2002, 2010, and 2015

US reliance on oil imports rises Source: EIA, International Energy Outlook 2004

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Saudi Arabia

Canada

Iran Iraq UAE Kuwait

Venezuela

Russia

Libya Nigeria

United States

China

Mexico

Qatar Algeria

Norway

Kazakhstan

Brazil Azerbaijan

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0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0

Price Cases, 2001-2015

Nonconventional oil production on the rise Source: EIA, International Energy Outlook 2004

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4.2 1.8

1.6 1.5 1.3 1.3 1.2 1.2 1.1 0.9 0.9 0.9

1.7

Saudi Arabia

Canada Iraq Kazakhstan Kuwait Russia United Arab Emirates

Brazil Venezuela Mexico Azerbaijan Angola

Other

Million Barrels per Day

Net Additions in World Oil Productive Capacity,

2001-2015

A number of countries are expected to add capacity Source: EIA, International Energy Outlook 2004

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Middle East Oil Productive Capacity by

Country, 2001 and 2015

The Middle Eastern share of world oil production capacity grows

through 2015 Source: EIA, International Energy Outlook 2004

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• In the short-term, tight markets and political tensions

keep world oil prices high.

• Through 2015, oil remains the dominant source of

worldwide energy use (39% of total energy

• U.S dependence on Persian Gulf OPEC will increase, but other OPEC and non-OPEC producers will remain important U.S suppliers.

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