• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 6 mins Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 3 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 1 day IMO 2020 could create fierce competition for scarce water resources
  • 3 hours Total nonsense in climate debate
  • 4 hours IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
  • 1 day IMO2020 To scrub or not to scrub
  • 15 hours Theresa May to Step Down
  • 1 day Devastating Sanctions: Iran and Venezuela hurting
  • 6 hours Will Canada drop Liberals, vote in Conservatives?
  • 1 day Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 7 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 3 hours Apple Boycott in China
  • 7 hours Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.

Lukoil: OPEC Deal Should Extend Into 2020 If US Oil Continues To Soar

Offshore rig

If U.S. oil production continues to boom at the current pace, OPEC and Russia should extend their production cut pact into 2020, Leonid Fedun, the vice president of Russia’s second-largest oil producer Lukoil, said on Friday.

“It will all depend on the American production,” Reuters’ Russian-language service quoted Fedun as saying on the sidelines of Lukoil’s investor day in London today.

It is not clear yet how fast U.S. production will grow, the manager said. If the pace of growth continues, OPEC and Russia will need to exit the deal in 2020, Fedun said. By that time, the industry will have started to feel the impact of the slashed investment in exploration and production in the past years, Lukoil’s manager said.

Lukoil should support the idea of OPEC’s de facto leader and biggest producer Saudi Arabia to extend the oil production cuts into 2019, Fedun added.

In an interview with Reuters on Thursday, Saudi Arabia’s Energy Minister Khalid al-Falih said that OPEC would need to continue to work in cooperation with Russia and the other non-OPEC countries on curtailing production in 2019 in order to cut the excess global inventories down to their desired level.

The comment of Lukoil’s Fedun on the OPEC-Russia deal is not the first time that the company’s senior management has commented on the pact.

Related: Is Guyana Prepared For An Oil Boom?

In January this year, when Brent Crude prices were at $70 per barrel, Lukoil’s chief executive Vagit Alekperov suggested that Russia should start exiting the pact if oil prices stayed at $70 for more than six months.

Oil prices failed to remain at $70 even for a month, but they have mobilized renewed drilling in the U.S. oil patch, to the point that the United States is on a track to unseat Russia as the world’s no.1 oil-producing nation.

Lukoil has stuck to its share of cuts under the OPEC-Russia deal, the company said in a presentation to investors today. Lukoil has also planned its strategy on a conservative $50 a barrel oil price scenario, under which it believes it is feasible to reach its strategic goals and increase dividend payouts. The company’s strategic goals are sustainable production growth; expansion in petrochemicals; and improving sales network efficiency.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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