The first day of the Egypt Oil & Gas (EOG) convention witnessed a remarkable presentation prepared by Wood Mackenzie giving insights on global energy security considering the Russian – Ukrainian crisis. The presentation was introduced by Martijn Murphy, a Principal Analyst of upstream North Africa at Wood Mackenzie under the title “Global energy Security: What do the current crises mean for Egypt?”.
The presentation provided data about current oil and gas current production as well as expected production. The data showed that the current liquid production reached 100 million barrels per day (mmbl/d), while natural gas production recorded more than 350 billion cubic standard feet per day (bcsf/d) in 2022.
According to Wood Mackenzie, the global liquid production capacity will reach 117 mmbl/d in 2033. Murphy said that gas production is not expected to reach the peak until 240 and it needs more new investments due to its importance in the energy transition process.
He showcased the situation of the global oil and gas market after the Russian-Ukrainian war. Murphy said that 1.7 mmbl/d of Russian oil production would be lost in the medium term. So that Wood Mackenzie expects that by 2025, the production growth would come from non – OPEC countries.
The Analyst referred to the role of Egypt and the East Mediterranean region to supply natural gas to Europe to compensate for Russian supplies. According to the data, Egypt has the most volume of prospective resources (2U) in the region. He expects the new terms adopted by the Egyptian government to increase oil reserves to 510 million barrels (mmbl) and facilitate additional investments of $5.8 million. Murphy said that “oil and gas will continue to dominate Egypt’s energy mix in the coming decades”. Additionally, he indicates that Egypt has great potential for renewables.