04-12-2017 08:55 AM
Rocky oil producers in the United States and the Organization of the Petroleum Exporting Countries (OPEC) have reached a sort of truce despite the absence of indications that the US oil sector could even contribute little to reducing the glut of global supply of crude, observers said.
US oil producers praised Opec's decision and the independent producers led by Russia on Thursday to extend an agreement to cut crude production until the end of 2018. Texas and North Dakota, the two largest producers of rock oil in the United States, called the extension "a gift to their producers."
"As prices seem to be stabilizing now with OPEC agreeing about $ 60 a barrel, I think it will become a very attractive price environment," said Ryan Seaton, one of three commissioners on the Texas Railways Commission, speaking by telephone from Austin. For the state. "
The committee regulates the Texas oil sector, which pumps more than three million barrels per day of crude, more than the production of some OPEC members. Siton expects production to grow by about 2 million barrels a day in 10 years.
In contrast to the previous meeting in May, when resentment from rock oil producers came out more than once, the members of Vienna this week adopted a more conciliatory tone.
"Rock oil is an important criterion, and it is complementary to global production," UAE Energy Minister Suhail al-Mazroui said on the sidelines of the talks. We can not ignore it, but we need to apply the correct calendar to that contribution without exaggerating its impact ».
"Opec members have shown that they have found it difficult to understand the rules of the US rocky oil game, but I think that is the situation," said Tommy Nozi, chief executive of oil-producing North Ossetia oil company in North Dakota. Is improving. "
One of the reasons OPEC's tone may shift is to increase confidence that rock producers in the United States will never be able to match their influence, especially as global demand is growing at around 1.5 million bpd now. OPEC production accounts for about a third of global crude supplies. The antitrust law in the United States prevents American producers from joining the organization.
"There has been a lot of fear of rock oil before this year," said Saudi Energy, Industry and Mineral Resources Minister Khalid Al-Falih in Vienna. The contribution of shale oil this year will be largely controlled and moderate "and is expected to remain so in 2018.
Some members noted that the optimistic expectations for production were rare.
The US Energy Information Administration data released Thursday showed that US crude oil production rose 3 percent in September to about 9.5 million bpd, up 25 percent since the beginning of the year.
The jump surprised markets and showed how fast rock oil producers are responding to rising prices by increasing production, a pattern that the oil industry needs throughout its history.
Scott Sheffield, executive vice president of Pioneers Natural Resources, one of the largest rock producers in the Permian Basin in Texas and New Mexico, the largest oilfield in the United States, said: "The additional money generated by higher prices "He added:" If producers in the United States increase the number of oil drilling platforms in the next few months, I expect prices to see a new collapse at the end of 2018. "