Bloomberg: OPEC predicted the end of the “Golden age” of shale oil

Bloomberg: ОПЕК предрекла конец «золотого века» добычи сланцевой нефти

© AP Photo / Jae C. Hong
Ministers of the Organization of countries — exporters of oil believe that the “Golden age” of shale oil in the US is over. About it reports Bloomberg with reference to sources in OPEC.

According to members of the organization, in 2020 the growth of shale oil in the United States slowed down compared to the previous period.

The same evaluation as pointed out by Bloomberg, and stick to oil traders. Thus, Vitol Group analysts expect oil production in the United States in the period from December 2019 to December 2020 will increase by 700 thousand barrels per day compared with growth of 1.1 million barrels from late 2018 to late 2019.

However, slowing growth does not mean his absence. While the American independent companies, producing shale oil, announced the spending cuts, the big players will probably continue to increase its production, said Bloomberg.

Thus the biggest problem for OPEC is not us shale oil, and the overall growth of production of “black gold” in countries such as Brazil and Norway, the Agency said.

The agreement by OPEC and several non-organisation countries (OPEC+) on the reduction of oil production is valid from the beginning of 2017. His action was repeatedly extended, and the terms changed.

Currently, the Treaty provides for the reduction of production by 1.2 million barrels per day from October 2018, of which 228 thousand barrels in Russia, and is valid until the end of March 2020.

The next meeting of representatives of OPEC countries+ where should be discussed the question of the renewal of the agreements, scheduled for December 5-6.


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