Abu Dhabi: Drop in oil prices and other developments in the energy sector like Opec policy and its impact on shale drillers is expected to dominate discussions at the 7th Gulf Intelligence Energy Forum in Abu Dhabi on Tuesday.
Oil prices have dropped by more than 60 per cent since June 2014 as production outpaces demand. From a peak of $115 per barrel, Brent, the global benchmark fell to less $35 (Dh128.5) this week as oil glut persists in the market.
The policy of Organisation of the Petroleum Exporting Countries (Opec)’s to defend its market share and let prices fall in a bid to push higher-cost rivals such as US shale oil explorers out of the market has proven costly and slow to bear fruits.
While US output has fallen 4.1% from its June peak of 9.6 million barrels a day, Opec members lost about $500 billion in revenue last year, according to the International Energy Agency (IEA).
“The Saudi objective to tap down US shale has already had its impact, and from here, there’s not much more affect they can have — the Saudis should accept the fact that is not going to change,” said Chris Faulkner, chief executive officer of Dallas-based shale driller Breitling Energy Corp.
“Shale has been more than validated, and once oil prices go back up to around $70, output in the US will pick up briskly,” added Faulkner, who will give The 2016 International Outlook Lecture at the energy forum.
Opec led by Saudi Arabia did not cut oil production to prop up prices at the groups’ annual meeting on December 4. The organisation which pumps about 40 per cent of the world’s oil expects its crude to rise to $70 per barrel by 2020 and to $90 by 2040.
Suhail Mohammad Al Mazroui, Minister of Energy, UAE, Shahid Khaqan Abbasi, Federal Minister for Petroleum & Natural Resources, Pakistan, Dr Emmanuel Ibe Kachikwu, Minister of State for Petroleum Resources, Nigeria and Opec President, Musabbeh Al Kaabi, CEO, Mubadala Petroleum, Talmiz Ahmad, India’s former Ambassador to Saudi Arabia, Oman and the UAE among others are expected to attend
Article Author: Fareed Rahman, Gulf News
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