The US EIA Short Term Energy Outlook (STEO) was published on January 10, 2023. This report generally provides forecasts for Total Liquids production for non-OPEC nations, crude only output for OPEC nations, and both C+C and Total Liquids forecasts for the US. At Peak Oil Barrel we focus on crude plus condensate (C+C) output as this is the critical input that provides most of the World’s liquid fuels used for land, air and water transportation. The STEO also provides forecasts for natural gas and electricity output as well as price forecasts for oil, natural gas, and electricity. This post will focus on oil (both total liquids and C+C).
We find the OLS trend in the ratio of C+C divided by total liquids for non-OPEC minus the US over the period from October 2014 to September 2022 (it has been decreasing at an annual rate of 0.267% over that period) and we assume the trend continues from October 2022 to December 2024 (the end of the STEO forecast). This allows us to estimate non-OPEC minus US C+C. Likewise we find the ratio of OPEC crude to C+C which was relatively flat at about 93.7% from Jan 2010 to December 2019 and seems to be returning to this level since the depths of the pandemic. By assuming the ratio is 93.7% crude to C+C for OPEC we can estimate OPEC C+C from October 2022 to December 2022 using the STEO crude only estimate. The non-OPEC minus US C+C estimate is added to the STEO US C+C estimate and this is combined with the OPEC C+C estimate to find the World C+C STEO forecast.
