• 4 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 7 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 10 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 13 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 20 mins EU has already lost the Trump vs. EU Trade War
  • 5 mins More dumbed down? re Hong Kong Act of Congress
  • 19 hours Impeachment S**te
  • 3 hours Pope Proposes New Sin: Thou Shalt Not Destroy The Harmony Of The Environment
  • 5 hours Article: Did Exxon only make $39 Million onshore U.S. last quarter ?
  • 1 day 55.00 WTI
  • 10 hours Visualizing Pennsylvania Oil & Gas Production (Through September 2019)
  • 7 hours U.S. Shale To Break Records Despite Bearish Rhetoric
  • 1 day Everything You Need To Know About Trump
  • 37 mins What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 1 day Water, Trump, and Israel’s National Security
  • 4 hours Last I Checked
  • 20 mins Petroleum Industry Domain Names
  • 1 hour U.S. Shale Output may Start Dropping Next Year

How OPEC Can Boost Its Spare Capacity

Oil

Wherever OPEC Secretary General Mohammad Barkindo went this week, he emphasized the importance of building up a sizable spare capacity cushion as a safe way to help the global oil markets weather any external shocks. The problem is by no means new, as we discussed two weeks ago Saudi Arabia has been looking into diplomatic ways how to ramp up production without hurting the sustainability of its production – it is a remarkable development given that for years Saudi Arabia’s 2 mbpd spare production capacity was perceived as a lifebuoy for any market irregularity. However, where does that leave other members of the OPEC+ agreement, why is it that countries like Russia, Iraq or the United Arab Emirates remain without a sizable spare capacity despite their resource wealth? Or is their spare capacity simply underreported? Let’s take a look.

Russia is a peculiar case for anyone who analyzes spare production capacities in that up to late 2017 it always produced as much as it could. How did it happen? Well, even after Moscow joined the OPEC/OPEC+ agreement in November 2016, it never really jeopardized the fate of greenfield projects that took many years to commission and several hundred million, if not billions, of dollars to finance. All the greenfield projects that were scheduled to come online in 2016 – Vostochno-Messoyakhskoye (140 kbpd peak production rate), Suzunskoye (100 kbpd), Vladimira Filanovskogo (120 kbpd), Pyakyakhinskoye (30 kbpd) –…




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