While recent events such as the Eurozone crisis and China's worsening economy had initially caused analysts to forecast a reduction of oil consumption, a new report indicates that isn't the case. According to the U.S. Energy Information Administration (EIA), global oil consumption is expected to increase over this year and next year.
The EIA's report – released Tuesday – suggests that global consumption will increase by 840,000 barrels per day this year. This forecast is an increase over the 760,000 barrels per day increase predicted in August. According to the report, the sudden increase stems from unforeseen incidents that spurred significant change in supply and demand.
"The oil market has tightened in recent months as the seasonal increase in global demand outpaced supply in August and unplanned production outages in countries outside of the Organization of the Petroleum Exporting Countries persist," the report said.
Due to these increasing demands, oilfield producers and drilling firms face a tremendous amount of pressure to extract oil from the ground in a quick and efficient manner. The longer it takes to drill, the greater the risks are concerning supply and demand. If oil companies cannot get the oil out fast enough, the industry could suffer enormous consequences, including a number of price increases.
It is up to these companies to uncover a solution that will spur rapid oil extraction. One possible answer is the use of an artificial lift, which can help withdraw oil out of the ground in a quick, efficient and safe manner. Teaming with the right artificial lift company for proper selection and design can be a significant asset to oilfield producers and drilling firms looking to speed up the process.