• 4 minutes Your idea of oil/gas prices next ten years
  • 7 minutes WTI Heading for $60
  • 13 minutes Could EVs Become Cheaper than ICE Cars by 2023?
  • 10 hours Is California becoming a National Security Risk to the U.S.?
  • 14 hours UK Power and loss of power stations
  • 13 hours I Believe I Can Fly: Proposed U.S. Space Force Budget Could Be Less Than $5 Billion
  • 4 hours Pence says South China Sea Doesn't Belong To Any One Nation
  • 12 hours Anyone holding Nvidia stock?
  • 1 day Plastic Myth-Busters
  • 1 day At U.N. climate talks, US Administration Plans Sideshow On Coal
  • 7 hours Germany Discusses Lifting Ban on Deporting Syrians
  • 13 hours China Claims To Have Successfully Developed a Quantum Radar That Can Detect 'Invisible' Fighter Jets
  • 1 day OPEC Builds Case For Oil Supply Cut
  • 1 day what's up with NG?
  • 22 hours A Sane Take on Nord Stream 2
  • 1 day Good Sign for US Farmers: Soybean Prices Signals US-China Trade Deal Progress

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) –…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions




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