• 4 minutes Why Trump will win the wall fight
  • 9 minutes Climate Change: A Summer of Storms and Smog Is Coming
  • 12 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 13 hours is climate change a hoax? $2 Trillion/year worth of programs intended to be handed out by politicians and bureaucrats?
  • 2 hours Ayn Rand Was Right
  • 1 hour Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 2 hours Oil imports by countries
  • 1 hour Solar and Wind Will Not "Save" the Climate
  • 4 hours Sanctions or Support: Despite Sanctions, Iran's Oil Exports Rise In Early 2019
  • 36 mins Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 3 hours NZ Oil, Gas Ban Could Cost $30 Bln
  • 23 hours Expected Breakdown: Israel-Central Europe Summit Canceled After Polish Pullout
  • 16 hours Regular Gas dropped to $2.21 per gallon today
Alt Text

Is A Natural Gas Cartel Forming?

Over two months ago, Qatar…

Alt Text

US Drillers See Modest Rise In Oil Rigs As Prices Hold

Baker Hughes reported an increase…

Alt Text

The 30 Most Exciting Wildcat Plays Of 2019

As E&Ps are stepping up…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

OPEC Lost $2 Trillion In Oil Price Slump

OPEC members lost over US$2 trillion in revenues and capital expenditure in the oil price crash, the cartel’s director general Mohammed Barkindo said, speaking to media in Nigeria. About half of this was lost revenues as prices tumbled from over US$140 a barrel to below US$30, and the rest was wiped out as cancelled projects.

Barkindo warned that the loss in capital investments was particularly serious as it threatened the future security of oil supply. Acknowledging the economic diversification efforts of OPEC members that were forced on them by the price crash, Barkindo said the importance of oil in helping to achieve this diversification was not to be underestimated.

The OPEC chief was optimistic about the outcome of the group’s concerted market rebalancing effort that should take off some 1.8 million barrels per day from global supply. Indeed, prices have been climbing recently, albeit slightly, thanks to unexpectedly high compliance rates among OPEC members.

The only members that have not yet hit their reduction quotas are Iraq and the UAE, and both have pledged to catch up in the coming months. There is also the growing prospect of cuts being extended into the second half of the year, because of the counter-pressure that U.S. shale producers are applying to prices, which have curbed the upward potential of prices. In the week to February 17, shale producers boosted daily output to more than 9 million barrels.

According to ANZ, as quoted by Reuters, if the cut deal is extended, it will be good for prices. On the other hand, extending the cut will also increase the likelihood of some OPEC members giving in to the temptation to cheat – Middle Eastern producers are already losing market share to exempt co-member Iran and other producers, such as Russia and Angola, whose reduction quotas are much smaller.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • EH on February 28 2017 said:
    Sounds like the Saudis need too CLAAAAW back there old market share, we could keep our oil for emergency use and use there$30 BUCK oil instead,,,what do ya think

Leave a comment




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