SouthH2 Corridor pipeline will deliver…
The COP28 climate summit in…
The NOPEC bill, which was recently reintroduced in Congress by a group of legislators, and price caps on oil will only serve to increase instability and uncertainty in oil markets rather than solve any problems.
This is the view of Saudi Energy Minister Abdulaziz bin Salman who spoke with Energy Intelligence.
“The Nopec bill does not recognize the importance of holding spare capacity and the consequences of not holding spare capacity on market stability,” bin Salman said, adding that “Nopec would also undermine investments in oil capacity and will cause global supply to fall severely short of future demand.”
A bipartisan group of U.S. senators earlier this month reintroduced the so-called No Oil Producing and Exporting Cartels bill in a bid to force OPEC+ to lift its self-imposed production cuts.
"The oil cartel and its member countries need to know that we are committed to stopping their anti-competitive behavior," Senator Chuck Grassley, one of the NOPEC backers said, as quoted by Reuters.
If successful, a NOPEC law would make it possible to sue OPEC national oil companies for monopolistic practices. According to bin Salman, the impact of such legislation coming into effect would be felt across the market, by consumers and producers alike, and it will not be a positive impact.
“The same holds for price caps, whether imposed on a country or a group of countries, on oil or any other commodity,” the Saudi energy minister told Energy Intelligence. “This will lead to individual or collective counter-responses with intolerable consequences in the form of massive volatility and instability.”
He then went on to say that if someone imposed price caps on Saudi oil, the Kingdom would shrink production and stop exporting oil to the countries that support the cap, which is exactly the same as Russia is doing with the G7/EU price cap.
By Irina Slav for Oilprice.com
More Top Reads From Oilprice.com:
Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.