OPEC is courting US shale oil producers and other crude-producing nations to join the “noble” initiative of curtailing global supply to bring stability to the market. Secretary General Mohammed Barkindo said ”When we brought together 24 producing countries in December of last year for declaration of cooperation, we made it very clear that it was still open to other producers who might want to join in this voluntary noble initiative to restore stability to the market.”
He said “Saudi Arabia and Russia are leading the initiative to bring in more producers. It is still work in progress.” He said “We had our exploratory meetings to explore areas of common interest. We were both pleasantly surprised with the outcome and the call by independents themselves that we need to continue this interaction and we are looking forward to reconvening these meetings with them shortly.”
Mr Barkindo further said the shale producers in North America have been urged to take this shared responsibility with all seriousness it deserves, as one of the key lessons learnt from the current unique supply-driven cycle.
The Organization of the Petroleum Exporting Countries (OPEC) is trying to reinstate its dominance in the oil industry by trying to maintain crude prices at a sustainable level. Oil prices have crashed to USD 50s now, from the high of USD 147 per barrel in 2008. Last year, the bloc and some others producers decided to reduce production by around 1.2 million barrels per day from January 1, 2017. But US production has soared by almost 10 per cent this year, driven largely by shale drillers. Source : PTI Pipe Industry Co., Limited (www.wilsonpipeline.com)
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