OPEC will be in a position to increase crude oil output by an additional 6mn barrels per day (bpd) by 2018 to offset declining production in the US and other places, according to its secretary general.
Speaking at the Oman Energy Forum, Abdalla Salem el Badri said, “The increase would make up for declining output elsewhere, in particular in the US, where tight-oil output is expected to start declining by then. OPEC output stood at 30.05mn bpd in September, down 400,000bpd from August levels.”
He said price movement this year has been in the US$100-US$110 range. “It is important that prices do not witness extremes. Prices should be maintained in a range that is acceptable to producers and consumers alike.”
Badri said OPEC expects global GDP growth to be around 2.9 per cent in 2013, which will increase to 3.5 per cent in 2014. “There has been, and there remains, more than enough supply to meet demand. We also see this as the case for the rest of 2013 and in 2014.”