Skip to content

Philippines Today

home of the Global Filipino

Menu
  • News Stories
  • Regional News
  • Business & Economy
  • Science & Technology
  • International
Menu

OPEC refusal to fix prices signals new oil era

Posted on November 29, 2014

MOSCOW, Nov. 29 (PNA/Sputnik) — OPEC’s (Organization of Petroleum Exporting Countries) refusal to cut production amid collapsing oil prices heralds a new era of American dominance in the oil market, say US experts.

“This is a historic turning point,” Daniel Yergin, an energy historian, told the New York Times.

“The defining force now in world oil today is the growth of US production. The outcome of the OPEC meeting is a clear indication that the oil exporters now recognize that this is a new market.”

Thanks to a boom in hydraulic fracturing, the US has increased its crude oil production from around 5,100 barrels per day in 2008 to more than 8,000 barrels this year: in September 2014 production averaged 8,864. Confounding expectations that the fracking surge would be only short-lived, the US oil and gas industry has managed to increase its productivity thanks to technological innovation which allows greater volumes of oil and gas to be exploited from underground formations.

However, investments in the new extraction process could become unprofitable for explorers if oil prices drop too low, a weakness which OPEC wants to exploit. Venezuelan Foreign Minister Rafael Ramirez, who had argued for a cut in production, told Reuters on the sidelines of Thursday’s meeting in Vienna, “OPEC is always fighting with the United States because the United States has declared it is always against OPEC… Shale oil is a disaster as a method of production, the fracking. But also it is too expensive. And there we are going to see what will happen with production.”

According to data from Bloomberg, on Friday US WTI was down 10.23 percent at USD 66.15 a barrel, while Brent was priced at USD 70.15 a barrel, down 3.35 percent, for January settlement. On Thursday, Leonid Fedun, vice president of Russian Lukoil, said the OPEC decision will bring about a crash in the US shale oil surge. “In 2016, when OPEC completes this objective of cleaning up the American marginal market, the oil price will start growing again,” he told Bloomberg in an interview in London. (PNA/Sputnik)

Share this:

  • Facebook
  • Twitter
  • LinkedIn
  • Pinterest
  • More
  • Tumblr
  • Reddit

Related

News Categories

  • Announcement (34)
  • Business & Economy (1,567)
  • Comment and Opinion (74)
    • Random Thoughts (18)
  • Current Issues (425)
    • Charter Change (1)
    • Election (228)
    • Population (6)
  • International (389)
  • Life In Japan (66)
    • Everything Japan (41)
  • Literary (34)
  • Miscellaneous (610)
  • News Stories (5,312)
  • OFW Corner (297)
  • Others (75)
  • People (408)
  • Press Releases (163)
  • Regional News (3,362)
  • Science and Technology (502)
  • Sports & Entertainment (287)

Latest News

  • BSP keeps policy rates anew December 17, 2015
  • NEDA cuts PHL additional rice import for 2016 by 25% December 17, 2015
  • DA cites serious implications of banning genetically modified products December 17, 2015
  • BBL is not yet dead – Drilon December 17, 2015
  • Comelec recognizes Duterte’s CoC for president December 17, 2015
  • NEDA chief sees 2015 growth at 6% despite typhoons December 17, 2015
  • House of Representatives ratifies bicam report on P3.002-T national budget for 2016 December 17, 2015
  • Cebu-based developer invests PHP430M to build 709 townhouse units in north Cebu town December 17, 2015
  • City gov’t eyes P75-M income from economic enterprise December 17, 2015
  • Baguio City LGU presents traffic plan for holiday season December 17, 2015

Archives

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

Science and Technology

  • DOST-ICTO targets 500,000 web-based workers from countryside by 2016
  • (Feature) STARBOOKS: A ‘makeover’ for librarians
  • Science, research reduce ‘cocolisap’ hotspot areas in PHL
  • Montejo to further improve PAGASA and empower scientists
  • 1st PPP in biomedical research produces knee replacement system fit for Asians

Press Releases

  • Microsoft to buy Nokia’s mobile devices business for 5.44-B euros
  • New World Bank climate change report should spur SEA and world leaders into action: Greenpeace
  • Save the Philippine Seas before it’s too late — Greenpeace
  • Palanca Awards’ last call for entries
  • Philippines joins the global call for Arctic protection

Comment and Opinion

  • Remembering the dead is a celebration of life
  • Killer earthquake unlikely to hit Panay Island in near future – analyst
  • It’s not just more fun to invest in the Philippines, it is also profitable, says President Aquino
  • How does one differentiate a tamaraw from a carabao?
  • Fun is not just about the place, it is also about the people, says DOT chief

OFW Corner

  • Ebola infection risk low in Croatia
  • Death toll rises to 41, over 100 still missing in landslide in India
  • Asbestos use in construction a labor hazard
  • 500,000 OFWs to benefit POEA on-line transactions — Baldoz
  • 25 distressed OFWs return home from Riyadh
©2025 Philippines Today | Design: Newspaperly WordPress Theme