Market Trends of Chad Oil and Gas Upstream Industry
This section covers the major market trends shaping the Chad Oil & Gas Upstream Market according to our research experts:
Oil to Dominate the Market
- As of 2018, Chad held an estimated 1.5 thousand million barrels of proved crude oil reserves. All of the country's proved oil reserves are held onshore because Chad is a landlocked country.
- Chad oil fields produce Doba type crude oil that has an average API of 25.3 with very low sulfur content. The quality of oil increases the demand for the oil as it does not require specific refinery to refine the oil.
- In 2018, the country has negligible production of natural gas owing to small reserves of natural gas in the country.
- Hence, oil is expected to dominate the market due to being present more in quantity than natural gas.
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Decreasing Oil Production to Restraint the Market
- As of 2019, Chad's largest oil fields are mature. Field expansions and recovery techniques have kept the country's old fields at a steady rate of production; however, without additional upstream investment, decline rates are likely to grow, resulting in lower production.
- Glencore, a large upstream corporation in the country, lost its license for exploration in the country. The government and the corporation could not finalize a deal for a new license. As the finances of the corporation have reduced it seems even less likely that a deal would be finalized in the forecast period.
- There has been a decrease in oil production by 1.85%, decreasing to 5.3 million tons of oil equivalent (Mtoe) in 2018 from 5.4 Mtoe in 2017. The decrease in production is due to oil fields getting matured.
- The Chad oil and gas upstream industry is expected to remain stagnant in the forecast period due to a decrease in oil production in the region.
