One America News posted a story today about a comment made by Mohammad Barkindo, OPEC secretary-general.
The article reports:
OPEC and other oil producers may need to take “some extraordinary measures” next year to rebalance the oil market, the OPEC secretary-general said on Sunday.
“There is a growing consensus that … a rebalancing process is under way. We are gradually but steadily achieving our common and noble objectives,” Mohammad Barkindo told reporters at the India Energy Forum organized by CERAWeek in New Delhi.
“To sustain this into next year, some extraordinary measures may have to be taken in order to restore this stability on a sustainable basis going forward,” he said, without elaborating.
Saudi Arabia and Russia helped secure a deal between the Organization of the Petroleum Exporting Countries and 10 rival producers to cut output by about 1.8 million barrels per day (bpd) until the end of March 2018 in an effort to reduce a glut.
Barkindo said consultations were under way for the extension of the OPEC-led pact beyond March 2018 and that more oil producing nations may join the supply pact, possibly at the next meeting of OPEC in Vienna on Nov. 30.
He also said that Nigeria and Libya, who are exempted from the pact, “are making progress towards full recovery” of production, after which they could join the OPEC-led agreement.
Translated loosely, there is a glut of oil on the world market, and the price has dropped. America is less dependent on foreign energy and has even been an exporter of crude oil since 2014 (see article here). The noose around America’s neck that OPEC exploited in the 1970’s no longer exists. OPEC will attempt to put that noose back, but I think it is too late.
Generally speaking, the countries that have been hurt by the drop in oil prices are not countries that celebrate freedom for their citizens–Russia and Venezuela to name a few. American energy independence is a good thing–both for America and for the world.