OPEC Sees No threat from Shale Oil Boom
From This Day Live
The Organisation of Petroleum Exporting Countries (OPEC) is not threatened by the U.S. shale oil production and the group can absorb higher output from its members, Iran, Libya and Iraq when supply outages are resolved, according to its Secretary-General Abdalla El-Badri.
“I welcome the tight oil of the United States,” El-Badri said at a recent Chatham House Middle East and North Africa Energy conference in London, Bloomberg quoted El-Badri as saying.
He added: “Demand will grow and this will not affect OPEC in any way.”
The OPEC predicts its 12 members will need to provide an average 29.6 million barrels of crude a day this year, about in line with the group’s current output, according to a monthly report on Jan. 16. The organisation said it produced 29.44 million barrels a day in December, with output curbed by losses in Libya. OPEC is responsible for about 40 percent of world oil supplies.
Production from OPEC may rise this year if Libyan protests subside, sanctions against Iran are lifted and Iraq meets its goals to lift output.
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