Saudi-led OPEC

At the Vienna meeting, OPEC decided to maintain the daily output of the year in 2013, stabilized at 30 million barrels, but this does not affect Saudi Arabia to help keep Brent crude oil price of 100 U.S. dollars / barrel minus side show of strength. Saudi Aramco has cut daily output from a year earlier to 60 million barrels. Such a huge production of other OPEC members cut unbearable luxury. Major oil-exporting country's social cause,Hydraulic fracturing we need to pay to use oil revenues, and these items from the 1970s and 1980s began to rapidly increase. These governments are increasingly relying on OPEC oil revenues to sustain the livelihoods of a rapidly growing population.

Saudi Arabia led to the dominance of OPEC between the "civil war", like Nigeria and other African countries because of lower demand in the U.S. suffer decline in oil export revenues hit. Oil and gas industry, senior analyst Fadel Gheit said: "Even if oil prices at $ 100 / barrel, these small member states but also because of corruption and lack of competitiveness, it is difficult to meet their budget and financial needs. Petroleum currency only to those countries to gain time but it is difficult to change the degree of interdependence among OPEC members reduced. "

Earlier in June,ceramic ball there was a discussion on the global oil market, experts say, all the signals are that even in the face of shale gas development will lead to the risk of falling prices, the Saudi leaders still choose to be supported on oil prices.

Eurasia Group consulting firm, director of energy and natural resource sectors Greg Priddy believes that the oil market will become more plentiful supply, it could prompt Saudi Arabia to further cut production to 900 million barrels / day. Priddy observers are in the market price of oil will quickly reduce a firm supporter of the volatile situation in the Middle East unless further expanded. Saudi Arabia To combat this trend may further cut production. Priddy that from shale and other sources of oil supply growth in 2014 and 2015 exceeded the growth in demand. This will further bring more problems.

According to the International Energy Agency released May interim oil market report predicts that by 2018, global oil production will grow by 840 million barrels, of which more than 70% of the increment from non-OPEC countries such as the United States. But given the rapid growth of the Asian energy market in the long run, the international energy companies remain skeptical, even with shale oil production, global oil supply is difficult to exceed demand growth.

In a recent Washington Center for Strategic and International Studies in activities, Chevron CEO John Watson's constant demand for new petroleum resources as a "run on the treadmill."fracturing proppant He said Chevron's upstream operations in Saudi Arabia has carried out more than 70 years, he believes that the new shale oil production will be absorbed by the wider market, he also admitted that Chevron so far in the field of unconventional oil also only light "little light." Watson believes that the daily production of 8,600 barrels of global oil case tight oil daily output of only 200 million barrels to 400 million barrels but to the level, you need to spend a decade or more. So in this context, shale oil production in the world oil market is controllable. He believes that the world is not much spare capacity.