SAFE’s Oil Security Index gives readers a detailed breakdown of how change in the production and consumption of oil affects the security of some of the world’s major economies and oil producers. Updated quarterly, the Index is an essential tool for visualizing and comparing the oil security of each country evaluated and includes a spotlight feature on the countries or events influencing the global oil market today.
This latest Index update spotlights Indonesia, which after officially announcing its intention to rejoin OPEC as a full member at the organization’s June 2015 meeting, has been formally invited to do so. Indonesia originally withdrew from OPEC in 2009, after years of declining production and increased demand had turned the country into a net importer. Reining in costs despite growing demand is critical for the archipelago, which ranks 13th in this quarter’s installment of the Index due in large part to its oil-intensive economy and high spending and dependence on oil imports.
The United States sits midway in the rankings in this quarter’s installment of the Index, though that position is threatened by increasing oil consumption and slowing domestic production. While the shale boom is responsible for a drastic decrease in the amount of oil imported from other countries, the sustained low price environment is wearing on the industry, resulting in thousands of layoffs and a projected decline in output of almost 0.2 mbd in 2016.
This Index update also includes a spotlight on China, which has seen demand growth stumble alongside a summer of financial uncertainty that roiled global markets and injected additional volatility into the price of oil.
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