• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 34 mins Shale Oil will it self destruct?
  • 2 days NYT: Mass Immigration Roundups in U.S. to Start Sunday
  • 13 hours White House insider who predicted Iran False Flag, David Goldberg found dead in his New York apartment
  • 7 hours Migration From Eastern Europe Raises German Population To Record High
  • 8 hours Excellent Choice: Germany's Von der Leyen Secures Powerful EU Executive Top Job
  • 19 hours Germany exits coal: A model for Asia?
  • 1 day Carrot And Stick: North Korea Suggests It Might Lift Weapons Test moratorium
  • 6 hours Washington Post hit piece attacking oil, Christians and Trump
  • 1 day South Korea imports No Oil From Iran in June - First-Half Imports Fall 37%
  • 15 hours Starlink Internet Courtesy of Tesla
  • 19 hours A Silence is heard
  • 2 days U.S.- Taiwan: China Says Will Freeze Out U.S. Companies That Sell Arms To Taiwan
  • 1 day Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
Alt Text

Another Beneficiary Of The OPEC Deal Emerges

North Sea oil producers could…

Alt Text

Libya’s Oil Revenue Takes A Beating

Libya’s oil revenue fell significantly…

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
Download on the App Store Get it on Google Play