CALGARY, Alberta (Nov. 12, 2024) — Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, has released its latest Fundamental Edge report, which focuses on global drivers for oil and gas prices through 2030, the five-year oil and gas supply and demand outlook, and price forecasts. The report is an update on key oil and gas supply and demand dynamics including China oil demand, near-term natural gas pricing relationships with production, Permian pipelines stack growth and comparing OPEC and IEA oil forecasts.
“To explain our oil price call, we leverage this simple formula: supply minus demand equals inventory change. Inventory/stock data, to us, is the most reliable indicator of market conditions,” said Al Salazar, report author and director at EIR.
“It’s our view that gas prices can rise to $4.00/MMBtu only when new supply is required to feed expanded LNG demand.”
Key takeaways from the report:
- L48 natural gas production unsurprisingly continues to be sensitive to movements in NYMEX HH prices.
- EIR had forecast natural gas storage inventories to reach 3.8 Tcf by the end of the injection season; inventories totaled 3.78 Tcf as of Oct. 18.
- The OPEC and IEA have had a ~1.0 MMbbl/d gap in annual average demand growth estimates since the beginning of the year. To meet OPEC’s demand forecast, there would need to be material growth in global oil production.+
EIR’s analysis pulls from a variety of Enverus products including Enverus Intelligence® Research.
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About Enverus Intelligence® Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.
