In his speech at the opening of the conference MEOS 2015 (Middle East Oil & Gas Show and Conference), the 19th Middle East Exhibition and Conference on oil, gas and petrochemicals, which was held in Bahrain, Al-Badri stated about negative consequences of the decisions of OPEC for shale-oil industry in the US.
His comments were published in Wall Street Journal. It is worth noting that this is the first public statement of the head of OPEC, in which he openly declares competition with American shale oil getters.
Abdullah Al-Badri, the secretary general of OPEC:
“If we don’t have more supply, there will be a shortage and the price will rise again,” he said.
They cannot produce it at $ 70-80 or even $ 90 per barrel. To remain profitable, shale-oil companies need the price to be $ 100 per barrel.
OPEC’s decision to maintain oil production at the same level was a major blow for slate companies in the US. For them, it felt like everything has collapsed. The consequences of this failure are clear: various projects are cancelled, the investment is decreased, and companies are forced to reduce their costs. In this situation, if we do not see an increase in supply, I think that soon the market will start to experience lack of oil and prices will start rising again. "
The head of OPEC also once again stated that "true picture" of the oil market will become clear only at the end of June and by the second half of 2015 the oil market will come to a more balanced state. Al-Badri said that according to forecasts, global energy demand by 2040 will increase by 60% and oil will remain a major source of energy.
The number of active oil and gas rigs in the world in February fell to its lowest level since June 2010.
According to the US oilfield services company Baker Hughes, last month in the world of work an average 2,986 units, which is 323 less than in January this year and 750 below the level of February last year.
In the US, the number of installations in February fell by 335 with respect to the previous month and amounted to 1,348, which is the lowest level since January 2010. In Canada, their number was reduced by 5 to 363. Thus, in North America in February was 57.3% working Drilling in the world compared to 62% in January and 64.1% in February 2014
In Europe, the number of drilling over the past month increased by 5 (up to 133), the Asia-Pacific region - 8 (up to 240) and in Latin America - 4 (355).
Value of the index in Africa and the Middle East has not changed in comparison with January and amounted to respectively 132 and 415 installation.
The average number of operating the world's oil and gas rigs at the end of 2014 amounted to 3578 - the highest level since 1985. In 2013, this figure was 3412 units, that is, over the last year figure rose by 4.9%.
His comments were published in Wall Street Journal. It is worth noting that this is the first public statement of the head of OPEC, in which he openly declares competition with American shale oil getters.
Abdullah Al-Badri, the secretary general of OPEC:
“If we don’t have more supply, there will be a shortage and the price will rise again,” he said.
They cannot produce it at $ 70-80 or even $ 90 per barrel. To remain profitable, shale-oil companies need the price to be $ 100 per barrel.
OPEC’s decision to maintain oil production at the same level was a major blow for slate companies in the US. For them, it felt like everything has collapsed. The consequences of this failure are clear: various projects are cancelled, the investment is decreased, and companies are forced to reduce their costs. In this situation, if we do not see an increase in supply, I think that soon the market will start to experience lack of oil and prices will start rising again. "
The head of OPEC also once again stated that "true picture" of the oil market will become clear only at the end of June and by the second half of 2015 the oil market will come to a more balanced state. Al-Badri said that according to forecasts, global energy demand by 2040 will increase by 60% and oil will remain a major source of energy.
The number of active oil and gas rigs in the world in February fell to its lowest level since June 2010.
According to the US oilfield services company Baker Hughes, last month in the world of work an average 2,986 units, which is 323 less than in January this year and 750 below the level of February last year.
In the US, the number of installations in February fell by 335 with respect to the previous month and amounted to 1,348, which is the lowest level since January 2010. In Canada, their number was reduced by 5 to 363. Thus, in North America in February was 57.3% working Drilling in the world compared to 62% in January and 64.1% in February 2014
In Europe, the number of drilling over the past month increased by 5 (up to 133), the Asia-Pacific region - 8 (up to 240) and in Latin America - 4 (355).
Value of the index in Africa and the Middle East has not changed in comparison with January and amounted to respectively 132 and 415 installation.
The average number of operating the world's oil and gas rigs at the end of 2014 amounted to 3578 - the highest level since 1985. In 2013, this figure was 3412 units, that is, over the last year figure rose by 4.9%.