• 4 mintues Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Forecasts for oil stocks.
  • 9 minutes Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 13 minutes European gas market to 2040 according to Platts Analitics
  • 12 mins U.S. Presidential Elections Status - Electoral Votes
  • 37 mins 1 in 5 electric vehicle owners in California switched back to gas because charging their cars is a hassle, new research shows
  • 3 hours *****5 STAR Article by Irina Slav - "The Ugly Truth About Renewable Power"
  • 1 day Americans are not agreement capable.
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 49 mins How US Capitalism Uses Nationalism
  • 9 hours Joe Biden's Presidency
  • 3 days Battery storage 30% cheaper than new gas peaker plants, Australian study finds
  • 53 mins The Painful Death of Coal
  • 21 hours Сryptocurrency predictions
  • 3 days Forecasts for Natural Gas
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

U.S. Shale, OPEC To Discuss Market Balance In Vienna

As everyone watches OPEC and Russia ahead of their meeting in Vienna next week, it’s easy to miss the fact that this is not the only meeting that will set the course of the global oil market in the coming months. OPEC officials will also meet with chief executives from the U.S. shale industry in Vienna, with Continental’s Harold Hamm, Hess Corp’s John Hess, and Pioneer’s Scott Sheffield among those to address OPEC, Reuters reports.

Although none of the executives were willing to comment on the meeting ahead of it, the topic of discussion will be cooperation, after the last price crisis revealed that the only way to achieve a balance between crude oil demand and supply is to work together rather than against each other.

The fact that has brought shale producers and OPEC closer together is that production is no longer priority number-one. “We’re getting to a point where a continued rise in the oil price is going to cause major problems for the global economy,” Reuters quoted the Council on Foreign Relations’ energy security and climate change program director Amy Meyers Jaffe as saying. “There are bigger issues at hand besides output that OPEC and shale producers care about.” Related: Saudi Arabia: Deal To Gradually Ease Cuts Is ‘Inevitable’

One of these bigger issues is the increase price elasticity of oil. A couple of decades ago, fossil fuels had no real alternatives. Now there are solar power plants and electric cars. As we saw from the last oil price rally, consumers are no longer willing to pay more to get increasing amounts of oil. They often seek alternatives and can find them relatively easily.

According to analysts, the top priority for shale producers now is not ever-higher oil prices—it’s stable prices. Although they cannot legally coordinate production to achieve these stable prices, the can discuss the situation and the future prospects of the global industry with OPEC. What will come out of these discussions remains to be seen.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • John Brown on June 15 2018 said:
    US shale oil executives at an OPEC Price & Market Fixing Conference. Why does that sound completely illegal to me?
  • Dempsey on June 15 2018 said:
    Um..... Have they ever heard of the Sherman Antitrust Act?

Leave a comment




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