Oilfield service business will lose 340 billion US dollars in the next 8 years!

The impact of the COVID-19 pandemic and the acceleration of the energy transition last month prompted Resta Energy to revise its forecast of peak oil demand. Resta Energy currently predicts that production will reach 102 million barrels per day in 2028, two years ahead of the previously expected 106 million barrels per day.

OFS procurement is expected to fall from US$625 billion in 2019 to US$473 billion this year, and remain flat in 2021, and then begin to slowly recover. According to Resta Energy’s latest peak oil demand forecast, Resta Energy now finds that, in nominal prices, the purchase price of OFS will not return to the pre-pandemic level after 2024, reaching $642 billion by 2025. Calculated by actual value, excluding the impact of rising prices, it is expected that the annual purchases for this decade will not return to the pre-pandemic level.

The purchase value loss of $340 billion is spread over the next 8 years and calculated as the cumulative difference between current and previous peak oil demand expectations, which is equivalent to a 6% drop.