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8
Volume
44
Issue
2
OAPEC Member Countries
Saudi Energy, Industry, and Mineral
Resources Minister HE Khalid Al Falih
said that the deal between OPEC and 24
non-OPEC countries has contributed to
absorbing two thirds of surplus reserves
in the market. This has been achieved
through controlling production. He
praised his country’s active role in the
healthy signs and recovery of the world’s
energy markets. He underscored the
Vienna convention signatories’ desire
to continue coordinating and working
together.
The minister expressed concerns that
a drop or undesired consequences would
follow the current price recovery due
to weak investments in the petroleum
industry. This calls for more work on
observing production, demand, and
investment in the energy sector.
In an interview with Al Arabiya TV
channel, Al Falih indicated that these
efforts contributed to strengthening
the world’s trust in OPEC member countries via
mutual professional action and good bilateral
relations between OPEC countries recently,
in addition to, cooperating with non-OPEC
producers.
Answering a question on shale oil
developments in the USA, he welcomed shale
oil production as a contributor to meeting
increasing world demand for oil in the light of
declining oil production in countries like Mexico,
Venezuela, and North Sea. HE Al Falih added “we
hope that the spike of shale oil production would
not lead to exceeding the market’s absorption
capacity, however; if happened, we will absorb
the surplus.”
HE Al Falih also pointed out to the importance
ofworkingonfindingmoreactionandcooperation
mechanisms with influential countries in the oil
market through encouraging new members to
join OPEC or through new partnerships with the
international energy organisations like the Gas
Exporting Countries Forum among others. He
clarified that OPEC members will discuss such
and more ideas during this year.
Moreover, HE Al Falih explained that
investments in the oil sector that exceeded $700
billion in the past have dropped to less than half
that amount. It is important that investments
increase again to ensure market’s stability. He
added that stocks and investments are the two
indicators that secure oil markets stability.
The minister concluded by disclosing that the
world oil stocks are heading towards balance. He
hoped to achieve stocks balance and investment
activation by the end of 2018.
HE AL FALIH:
MORE WORK ON OBSERVING PRODUCTION,
DEMAND AND INVESTMENT IN ENERGY SECTOR
• HE Khalid Al Falih