The
consensus decision among the Organisation
of the Petroleum Exporting Countries (OPEC), has been effective in
arresting any further deterioration in prices and it has helped reduce
volatility, OPEC Secretary General, Mohammad
Sanusi Barkindo, has said.
Speaking on
Monday, at the 5th High-level Meeting of the OPEC-Russia Energy Dialogue, Vienna, Austria, Barkindo said that
the decision to cut production has also improved overall market sentiment and
strengthened the case for burden sharing and broader cooperation.
“We
believe it is essential that producers, both OPEC and non-OPEC, look to address
the issue of the stock high inventories. This is now central to the
return of a balanced market and to establish sustainability.
The importance of this cannot be
overemphasized”, he added.
He said that there is need for sustainable market stability to fund investment in new exploration and production, to arrest decline rates in existing fields, expand midstream and downstream capacity.
Barkindo
added that market stability will make it easy for operators to hire, train and
support the people that will continue to drive oil industry forward in the
years ahead. He disclosed that there are also many other ongoing and related
challenges for oil markets, such as: the uncertain prospects for the
global economy; excessive speculation and the role of financial
markets; the impact of geopolitics; advances in technology and the
benefits that could spill-over into other areas of the energy value
chain; environmental and climate change policies; and sustainable
development concerns.
A number of
these issues, he noted, “are on our agenda today, with
specific presentations on the uncertainties associated with climate policies,
and technological developments and their possible implications for oil and
energy markets.”
Barkindo
said that there are signs that the re-balancing of the fundamentals is underway,
with overall non-OPEC supply contracting this year and demand at healthy
levels, the large stock overhang continues to be a major concern.
He stated: “It is evident that the short-term picture is the one on all
of our minds. But we need to appreciate the fact that all time frames are
interlinked. What happens today will have a bearing on what happens in the
future, particularly given that this industry is very much a medium- to
long-term business. In this regard, the OPEC-Russia Energy Dialogue has become
an established platform, among others, to discuss the variety of challenges
that we face, as well as the opportunities that our industry continues to
offer.
“Over
the years, our bilateral cooperation has flourished, and we value the direct
and open channels of communication that have evolved. The leadership role
of the Russian Federation is crucial in combating the current energy challenges
that are often intertwined and complex in nature.” (Guardian)
No comments:
Post a Comment