A closer look at the revision of the global consumption forecast, OPEC's extended cuts in 2018 and climate change liability risks.
Revising the global consumption forecast
While Tesla unveils its first electric truck and Norway, Western Europe's biggest oil and gas producer, considers getting rid of its investments in the oil-and-gas assets in the Sovereign wealth fund, OPEC has just revised its global consumption forecast up 360,000 bpd from its previous forecast.
The increased confidence in the short-term demand coupled with continuing uncertainty in the long-term demand makes it tougher for oil companies to come up with convincing investment cases in additional supply. This again begs the question as to whether the current business model of oil-and-gas majors is adequate.
– Anton Oussov, Global Head of Oil & Gas and Head of Oil & Gas in Russia and the CIS, KPMG in Russia