OPEC Secretary General urges U.S. shale oil producers to help cap global supply
Mohammed Barkindo
OPEC Secretary General Mohammed Barkindo  speaks to the media during  his  visit in Abuja  Nigeria Febuary 27  2017. REUTERS/Afolabi Sotunde
NEW DELHI (Reuters) - OPECâs Secretary General Mohammed Barkindo on Tuesday called on U.S. shale oil producers to help curtail global oil supply  warning extraordinary measures might be needed next year to sustain the rebalanced market in the medium to long term.
âWe urge our friends  in the shale basins of North America to take this shared responsibility with all seriousness it deserves  as one of the key lessons learnt from the current unique supply-driven cycle â said  Barkindo .
âAt the moment we (OPEC and independent U.S. producers) both agreed that we have a shared responsibility in maintaining stability because they are also not insulated from the impact of this downturn â  Barkindo  said  referring to a slide in oil prices that spurred OPEC to agree production cuts late last year.
While OPEC and some other producers  including Russia have cut supplies this year in order to prop up prices  U.S. production has soared by almost 10 percent this year  driven largely by shale drillers.  Barkindo  said  he  hoped that new producers  not just U.S. shale drillers  would join production cuts.
âDemand-supply is returning to rebalance through massive destocking that we have been witnessing of stocks in OECD across regions in a very massive way â  Barkindo  said later  speaking to reporters on the sidelines of the conference.
âIn the past four months alone  we have seen destocking to the tune of 130 million bpd â  he  said.
The aim of the OPEC-led cut is to trim the level of oil in OECD industrialized countries compared with the five-year supply average.  Barkindo  said the stock overhang to the five-year average stood at 171 million barrels in August  against 338 million at the start of the year.
âThe speed and pace (of destocking) has accelerated as a result of anticipated and projected demand growth in the second half of 2017 to the tune of 2 million bpd. We are witnessing a fast return to a balanced market â  Barkindo  said.
Still  on  Sunday Barkindo  said OPEC and other oil producers might need to take âsome extraordinary measuresâ next year to rebalance the oil market.
World oil demand growth in 2017 is expected at 1.45 million barrels per day (BPD) and it should stay around 1.4 million bpd in 2018   Barkindo  said.  He  said Indiaâs share of global oil demand is expected to rise to over 9 percent by 2040  up from 4 percent now.
[TGT] speaks to the media during   [TGT]   visit in Abuja  Nigeria Febuary 27  2017. REUTERS/Afolabi Sotunde
NEW DELHI (Reuters) -  [TGT]  on Tuesday called on U.S. shale oil producers to help curtail global oil supply  warning extraordinary measures might be needed next year to sustain the rebalanced market in the medium to long term.
âWe urge our friends  in the shale basins of North America to take this shared responsibility with all seriousness it deserves  as one of the key lessons learnt from the current unique supply-driven cycle â said  Barkindo .
âAt the moment we (OPEC and independent U.S. producers) both agreed that we have a shared responsibility in maintaining stability because they are also not insulated from the impact of this downturn â   [TGT] said  referring to a slide in oil prices that spurred OPEC to agree production cuts late last year.
While OPEC and some other producers  including Russia have cut supplies this year in order to prop up prices  U.S. production has soared by almost 10 percent this year  driven largely by shale drillers.   [TGT] said   [TGT]   hoped that new producers  not just U.S. shale drillers  would join production cuts.
âDemand-supply is returning to rebalance through massive destocking that we have been witnessing of stocks in OECD across regions in a very massive way â   [TGT] said later  speaking to reporters on the sidelines of the conference.
âIn the past four months alone  we have seen destocking to the tune of 130 million bpd â  he  said.
The aim of the OPEC-led cut is to trim the level of oil in OECD industrialized countries compared with the five-year supply average.   [TGT] said the stock overhang to the five-year average stood at 171 million barrels in August  against 338 million at the start of the year.
âThe speed and pace (of destocking) has accelerated as a result of anticipated and projected demand growth in the second half of 2017 to the tune of 2 million bpd. We are witnessing a fast return to a balanced market â   [TGT] said.
Still  on   [TGT] said OPEC and other oil producers might need to take âsome extraordinary measuresâ next year to rebalance the oil market.
World oil demand growth in 2017 is expected at 1.45 million barrels per day (BPD) and it should stay around 1.4 million bpd in 2018    [TGT] said.   [TGT]   said Indiaâs share of global oil demand is expected to rise to over 9 percent by 2040  up from 4 percent now.