Asia oil output to shrink on lack of investments, price may rise

Growing bill: A technician checks pipelines at Bangchak oil tanks in Bangkok. As Asia’s net imports grow and crude prices recover, the region’s oil import bill is set to climb back above US500bil in 2017 for the first time in three years. — Reuters

SINGAPORE: A widening gap between Asia’s oil production and demand is creating a growing capital drain for the region and leaving countries vulnerable to global supply disruptions and a sudden surge in oil prices.

Asia’s net oil imports surpassed the total amount of oil consumed in North America in 2015 and are set to rise after producers slashed spending on exploration and production on low oil prices, leaving oilfields at risk of sharp production declines in the next decade.