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New Energy Competiton? OPEC to Meet US Shale Oil Producers

© AP Photo / Hasan JamaliIn response to the high cost of US shale, Saudi Arabia has been selling its massive stockpile of crude oil at rock-bottom prices.
In response to the high cost of US shale, Saudi Arabia has been selling its massive stockpile of crude oil at rock-bottom prices. - Sputnik International
HOUSTON (Sputnik) - The Organization of the Petroleum Exporting Countries (OPEC) is meeting US shale oil producers to discuss and compare forecasts for the oil market, but their participation in production's cuts is out of the question, UAE Energy Minister Suhail Mazrouei told Sputnik adding that he had no high expectations from the meeting.

"We have no expectations, we are meeting with many companies and among those are shale oil producers. We have no expectations for the shale oil producers to do anything for us, we are just meeting to compare notes and look at the market and discuss like we discuss with any company, but there is no expectation,” Mazrouei said.

He warned against putting high expectations for the upcoming meeting scheduled for Tuesday in Houston, as US shale oil producers “are obviously not joining” the oil output cut deal.

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“We are here meeting so many people. OPEC and non-OPEC have done great efforts that help everyone, help the market, we are looking at forecast this year, trying to narrow the differences and among those important producers are the shale oil producers,” Mazrouei said ahead of the CERAWeek conference.

Last week, Mazrouei said OPEC was planning to meet with US shale producers on the sidelines of the CERAWeek conference to be held March 5-9 in Houston, Texas. T

The United States would be mainly represented by "the main stakeholders or players from the financial market", while OPEC will be represented by Secretary General Mohammed Barkindo and Mazrouei, UAE Governor for OPEC Ahmed Mohamed Alkaabi told Sputnik.

In 2016, OPEC and several oil producers outside the cartel agreed to cut oil output by a total of 1.8 million barrels per day in an effort to stabilize global oil prices.

Non-OPEC states pledged to jointly reduce oil output by 558,000 barrels per day, with Russia pledging to cut production by 300,000 barrels daily. In May, the parties to the agreement agreed to extend the deal until the end of March 2018. Another extension was made in late November that would make the deal in effect until the end of 2018.

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