There’s a meeting of OPEC this week . But the power that once made the world shudder will not be on display . Times have changed . The US and Russia are the two top producers of oil this year according to the International Energy Agency. And , of course, Saudi Arabia and Iran don’t get along and are each trying to keep market share . There is a steady stream of Asian countries to Tehran these days shoring up new oil and gas deals. And Russia exported more oil to China than did Saudis Arabia this past month.
Some feared a substantial drop of US shale oil given the low price. And while some companies have exited the scene others have taken over the properties and with less overhead are poised to produce quickly with the right prices.
Saudi ‘s new leadership has an ambitious plan to wean off their high dependence on oil over the next few decades ; interesting policy ! We’ll see how much debt will have to be incurred to realize this plan and whether at some stage this is sustainable.
The long and short of it all is that supply is now more dispersed and hence the once OPEC stranglehold is greatly diminished . Even in Easter Canada without the pipelines from the west , US supply is now competing with Middle East and Venezuelan sources. Now who would have thought that a short few years ago.