With the world’s supply of natural gas and the potential for massive new oil and gas discoveries, one question remains: Is the world on the brink of a new supply glut?
“With the potential of a glut of natural-gas resources on the horizon, the question is whether or not it is time to begin the panic mode and call it quits?” wrote one analyst.
“It would seem that a lot of the current hysteria is simply not backed up by data.”
The New York Times editorial board recently put out a call for a “big reset” of the energy market, warning that the glut of oil and natural gas is a major threat to the world economy.
But the editorial board also made clear that its position is not a call to panic, as some critics have claimed.
The editorial board of The New York of the United States said that while it is not entirely clear that the natural-gases glut poses a threat to global growth, it does “seem that there is something wrong with the current global economy, and it is a problem.”
“The fact that oil prices are so high and gas prices are such low, coupled with a glut in supplies, suggests that there may be something wrong,” it said.
The New Yorker, a newspaper owned by the billionaire Rupert Murdoch, also wrote that there are signs that the world is on the verge of a “gigantic natural-resources glut.”
“This is not about the U.S. shale oil industry, or the oil-and-gas boom in places like Brazil, Argentina and Nigeria,” the editorial said.
“This is about the world, which is awash with natural-resource resources, and a glut on the natural resources market that could result in a massive global resource shortage.”
The Times editorial said that it is “very hard” to know what will happen in the next couple of months, with “very little clear data on what is really going on.”
“But if we do not act now, it is going to be a lot harder to find a way to find some of these resources,” it warned.
“It is not that we do this all by ourselves.
We are working with others, from the governments to the private sector to the NGOs to the oil companies.”
Bloomberg reported on Wednesday that global oil production fell by 4.7 million barrels per day (bpd) in the first six months of 2017, marking the first year of decline since 2011.
The decline came after a 3.9 million-bpd rise in the previous quarter.
“The global oil market is in a tailspin,” Bloomberg wrote.
“As oil production declined, so did global demand.
The result is a global glut of crude oil.”