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The Organisation of Petroleum Exporting Countries (OPEC) could lose almost 8 per cent of its oil market share in the next five years as the shale energy boom and other competing sources boost rival supply.
The organisation which decided to carry out its own research into shale oil earlier this year has been slow to acknowledge the impact shale gas is having on supply, according to Reuters report.
The US shale boom has redrawn the landscape of oil trade. Nigeria and fellow OPEC member Algeria have felt the heat, losing ground in their most lucrative export market as US output rises and approaches that of top oil producer Russia, the report said.
In its annual World Oil Outlook, OPEC said it expects global demand for its crude oil to average 29.2 million barrels per day (bpd) in 2018, down 1.1 million bpd from 2013, because of increasing supply outside the 12-member group.
The Organisation says it sees an even larger drop in demand for members’ crude to 28 million bpd in 2018, representing 7.6 per cent less than 2013 figure and 2 million bpd below what it is currently producing.
“There is no shortage of oil and resources are plentiful. Increasing global oil demand is supported by an expanding diversity of supply sources,” Reuters quoted OPEC Secretary General, Abdullah al-Badri, as saying in the foreword to the report.
OPEC which has a target to produce 30 million bpd will meet in December to decide whether to adjust it. “Our assumption for the remainder of the year is for $100, $110. This is really suitable to producers and consumers alike,” El-Badri said.
But the organisation would face a choice of cutting its own output to boost prices, or accepting a lower price to drive some of the more costly competing supplies out of business.
“In addition to the potential for a more rapid expansion of supply from North American shale oil, there are also additional tight oil resources in other non-OPEC countries, particularly Russia, Argentina and China,” the report added.
- Leadership
The organisation which decided to carry out its own research into shale oil earlier this year has been slow to acknowledge the impact shale gas is having on supply, according to Reuters report.
The US shale boom has redrawn the landscape of oil trade. Nigeria and fellow OPEC member Algeria have felt the heat, losing ground in their most lucrative export market as US output rises and approaches that of top oil producer Russia, the report said.
In its annual World Oil Outlook, OPEC said it expects global demand for its crude oil to average 29.2 million barrels per day (bpd) in 2018, down 1.1 million bpd from 2013, because of increasing supply outside the 12-member group.
The Organisation says it sees an even larger drop in demand for members’ crude to 28 million bpd in 2018, representing 7.6 per cent less than 2013 figure and 2 million bpd below what it is currently producing.
“There is no shortage of oil and resources are plentiful. Increasing global oil demand is supported by an expanding diversity of supply sources,” Reuters quoted OPEC Secretary General, Abdullah al-Badri, as saying in the foreword to the report.
OPEC which has a target to produce 30 million bpd will meet in December to decide whether to adjust it. “Our assumption for the remainder of the year is for $100, $110. This is really suitable to producers and consumers alike,” El-Badri said.
But the organisation would face a choice of cutting its own output to boost prices, or accepting a lower price to drive some of the more costly competing supplies out of business.
“In addition to the potential for a more rapid expansion of supply from North American shale oil, there are also additional tight oil resources in other non-OPEC countries, particularly Russia, Argentina and China,” the report added.
- Leadership
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