Wood Mackenzie: Asia-Pacific oil production declining at record levels - CNBC

Angus Rodger, Wood Mackenzie’s Asia-Pacific upstream research director, noted in its latest research report, oil production in Asia-Pacific is declining at a rate and a big chunk of losses comes from China alone, CNBC reports.

Key Quotes:

"We estimate 2016 production of 7.5 million barrels per day will fall by over a million barrels per day by 2020." 

"Lower oil prices and the severe cuts to upstream capex (capital expenditure) to mature assets has increased decline rates."

"Regional oil production will be underpinned by giant fields in Indonesia, Malaysia and China but these fields are super mature and will require expensive techniques, high break-evens and capex cuts." 

"The scarcity of new oil discoveries over the last two decades combined with lower prices and hefty capex cuts, particularly to legacy fields, will see decline rates spiral across the region."