Oilprice.com details all the barrels that won't come on stream as predicted, and thus "anybody who thinks low oil prices are the ‘new normal’ is going to be surprised,” as the IEA’s executive director Fatih Birol said in Davos. That is unless we're hit by a recession throughout the world.
The world needs to replace about 5 percent of total production each year just from natural depletion. That is somewhere around 5 million barrels per day (mb/d) each year in new output.Wood Mackenzie recently estimated that $380 billion in major oil projects have been delayed or cancelled... That means that about 27 billion barrels that had been slated for production from those projects will now not be produced.But more cuts are expected moving forward. “There has been a $1.8 trillion reduction in spending planned for 2015 to 2020 compared to what was expected in 2014,” historian and oil expert Daniel Yergin said at the World Economic Forum in Davos