Rising Production Costs of Oil

In the IEA's latest edition of their World Energy Outlook, global oil consumption is expected to rise from 88 million barrels of oil per day to 99 million barrels of oil per day in 2035 (an average annual growth of about 0.5% per year). Most of the increase in oil consumption will come from emerging economies while most of the increase in production will come from the Africa and the Middle East. The costs of oil production are expected to rise in most places in the world. Latin America is expected to experience the largest increase in breakeven costs due to their deep water oil projects. Breakeven costs in North America are not expected to increase that much which seems odd considering the high costs of producing from non-conventional sources like tar sands and shale deposits.