Global Oil Production Projected To Boom Despite Opec’s Cut

It seems the global crude-oil production will be on the rise on 2018, and it’s not only because of the output of the United States. The 14 member-countries of the Organization of the Petroleum Exporting Countries (OPEC) have made a deal with several non-members on December 2016 to cut production by 1.8 million barrels per day.

Image source: investing.com

After the OPEC reached an agreement with non-OPEC oil producers for an extended oil production cut until March 2018, compliance to the pact is not as strict as expected. Russia has recently expressed its concerns about its loss of market share in oil to the United States as President Donald Trump has decided to pull U.S. out of the Paris Agreement. This move by the U.S. could help ease limitations and restrictions on its local fuel sector, which can equate to bigger oil production. And just recently, three Persian Gulf countries have cut ties with Qatar. OPEC also changed its exemptions for Nigeria and Libya as they struggled with internal conflict. Royal Dutch Shell has just lifted force majeure on Nigeria’s Forcados crude, as the country only exports online—the first time in 16 months. Libya has also recently hit its highest oil production even with the brief shutdown of the country’s biggest oilfield, Sharara.

Image source: thehindubusinessline.com

Even with the cut from OPEC, member-countries are looking for ways to boost their oil industries. After all, even barrels from the U.S. are looking for consumers in Asia and Europe. This dynamic change points out the need for a better resolution from OPEC.

For more about the oil and gas industry, follow this Cody Winters Twitter page.