OPEC Must Continue Working with its Non-OPEC Allies to Overcome Downturn
by September 19, 2020 November 21, 2021
Amid oil price volatility, expanded producers' agreements and questions about the long-term outlook for oil, OPEC is celebrating its 60th birthday this week. OPEC's ability to emerge from adverse situations and perform its fundamental task of balancing the global oil market and securing favorable price levels for its members has kept the entity both relevant and efficient six decades on, says MEED, part of GlobalData.
OPEC's 60-year journey has been filled with crises and episodes that have repeatedly struck at its very existence. Since its formation, the oil producers' group has endured at least seven major oil price cycles, including the current coronavirus-related downturn.
Indrajit Sen, Oil & Gas Editor at MEED, part of GlobalData, says: "The Saudi Arabia-led organization's greatest achievement to date has arguably been its success in keeping a Russia-led group of 11 non-OPEC oil producers engaged since November 2016, in a mechanism to achieve global crude demand-supply balance through production cuts.
"The OPEC+ alliance, as the cooperation framework between the Riyadh- and Moscow-led sides has come to be known, has proved highly effective in helping the oil market recover from the late 2014 to early 2017 downturn."
The unprecedented crisis caused by the coronavirus pandemic is expected to result in a year-on-year loss of 9.5 million barrels a day (b/d) of crude demand in 2020, according to OPEC's own estimate. In response to the precipitous demand decline, OPEC+ sealed a landmark deal in April to reduce oil production by 9.7 million b/d in May and June, and gradually ease output cuts until April 2022.
Sen adds: "The ongoing production cuts have played a key role in boosting oil prices from the historic lows touched during the second quarter of 2020, particularly in April. OPEC knows it is battling probably the biggest oil demand erosion challenge it has ever faced, and must continue working with its non-OPEC allies in the future to overcome the downturn."
True Wind Capital Announces Strategic Investment in W Energy Software
ESG Sustainability Reporting in the Finance Sector
Tracts and Enverus Partner to Deliver Property Rights Document Interpretations On-demand
5 Keys To An Effective Oil And Gas Emergency Response Plan
Where Do Oil & Gas Funds Stand Among Trendy Commodity ETFs?
Major Oil and Gas EPC Players are Aligning Strategies for Energy Transition
Gasoline Prices Rise as Demand Increases
Alex Mills May 27, 2021 January 16, 2022
TIPRO Statement on Passage of Legislation to Prevent Energy Discrimination
Bring Your Oil and Gas White Paper to Life
West Texas Intermediate Reaches $75
Alex Mills July 1, 2021 November 21, 2021
Your Complete Guide to Essential Oil & Gas Industry SoftwareDownload Today
It's tempting to think of software as just creating the digital counterparts of real-world items such as email versus letters or an Excel spreadsheet versus a ledger. And at a basic level, this is true. After all, the oil and gas industry spends $5 billion each year on paper records which can be managed more inexpensively by digital document software.