• 4 hours OPEC, Russia Said To Announce Oil Pact Extension On Nov 30
  • 7 hours Wintershall And LetterOne In Talks For $12B Oil, Gas Merger
  • 9 hours India Exempts State Oil Firms Mergers From Competition Approval
  • 11 hours Turkey Targets $5B Investment In Wind Energy By End-2017
  • 13 hours Weatherford Looks To Sell Assets To Ease Some Of $8B Debt
  • 14 hours OPEC Set To Move Fast On Cut Extension Decision
  • 16 hours Nigeria Makes First Step Away From Oil
  • 1 day Russia Approves Profit-Based Oil Tax For 2019
  • 1 day French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 1 day Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 1 day Oil Production Cuts Taking A Toll On Russia’s Economy
  • 2 days Aramco In Talks With Chinese Petrochemical Producers
  • 2 days Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 2 days Maduro Names Chavez’ Cousin As Citgo Boss
  • 2 days Bidding Action Heats Up In UK’s Continental Shelf
  • 2 days Keystone Pipeline Restart Still Unknown
  • 2 days UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 2 days Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 2 days Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 3 days German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 3 days Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 3 days Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 3 days Oil Prices Rise After API Reports Major Crude Draw
  • 3 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 3 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 3 days Statoil Looks To Lighter Oil To Boost Profitability
  • 4 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 4 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 4 days Whitefish Energy Suspends Work In Puerto Rico
  • 4 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 4 days Thanksgiving Gas Prices At 3-Year High
  • 4 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 4 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 5 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 5 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 5 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 5 days ConocoPhillips Sets Price Ceiling For New Projects
  • 7 days Shell Oil Trading Head Steps Down After 29 Years
  • 7 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 7 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
Alt Text

U.S. Boosts Oil Exports To Key Asian Markets

U.S. oil exports to Asia…

Alt Text

U.S. Shale To Beat Saudi Production Growth

In its latest report, the…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

OPEC Chief Says Cartel Lost US$1 Trillion To Oil Price Bust

OPEC meeting

Due to the slump in oil prices, OPEC producers have lost more than US$1 trillion in revenues over the past three years, OPEC Secretary General Mohammad Barkindo has told reporters in Washington DC.

Investments in the oil industry shrank more than 26 percent last year and are projected to drop by another 22 percent this year, Barkindo said on the sidelines of meetings of the International Monetary Fund (IMF) and the World Bank in the U.S. capital.

The estimates for 2017 are also “looking very bleak,” Nigeria’s The Nation quoted Barkindo as saying. For the first time in recent memory, OPEC is not only facing three years in a row of low crude prices, but also declining capex, especially in the upstream business, according to the OPEC official.

Most experts, analysts and agencies, including the IMF and the World Bank, failed to predict correctly how long it would take the market to rebalance, Barkindo noted.

OPEC’s decision to curb production “will go a long way in stimulating stock drawdown”, Barkindo said in late September after the organization had reached a deal-to-make-a-deal on output. Barkindo admitted that the overhang was still huge, and the market had not been rebalancing as fast as the cartel’s producers had wanted.

OPEC may have agreed in principal that it would seek to limit production to a range of between 32.5 million barrels per day and 33 million bpd, but the market is still guessing which member is cutting (if at all) how much, and speculation and rhetoric are rampant.

This week it will be Istanbul’s turn to be the stage for OPEC-related news, comments, hints, and speculation, as OPEC and non-OPEC members hold informal meetings there. A series of other meetings are slated to take place between now and the official meeting in Vienna on November 30, when recommendations on production limits per OPEC member are expected to be reviewed.

Today however, both Iran’s and Iraq’s oil ministers confirmed that their countries will not participate in this week’s Istanbul meeting and Iraq’ oil minister has even called upon oil and gas companies operating in Iraq to increase their production for the rest of 2016 and 2017. This comes after Iraq questioned OPEC’s methods of calculating production estimates for each member state only one day after OPEC announced its new output cap.

The absence of two of OPEC’s biggest producers suggests that the final decision on the freeze might turn out to be even more challenging than already believed. If OPEC doesn’t manage to increase oil prices through the proposed deal, OPEC’s revenue losses may continue to mount.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • BS Buster on October 11 2016 said:
    Couldn't happen to a nicer bunch of countries.
  • GregSS on October 11 2016 said:
    I sympathize with all the US oil field hands that lost good jobs, but I certainly will not shed any tears for OPEC over the $1 Trillion they lost.
  • GregSS on October 11 2016 said:
    I sympathize with all the US oil field hands that lost good jobs, but I certainly will not shed any tears for OPEC over the $1 Trillion they lost.
  • jack ma on October 11 2016 said:
    They will make back 2 trillion and that was the plan. Cap x cuts are historic and when demand exceeds supply and not just the fake AEI numbers, oil will hit 200. JM

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News