The global oil industry has entered a new year during the late phase will be adjudicated to the forces of supply and demand, having led the political decisions of a private party OPEC over more than four decades. Brent crude has let a year at its lowest since 6 years. Record 2014 the biggest shift in the global oil industry to witness the end of an era and the beginning of a new phase, after spending the first half of the year, prices at high levels, to moving in the second half to the biggest drop since the outbreak of the global financial crisis in 2009. He stressed near the end of the year, that the covenants influence global oil prices through production quotas and policies has ended, never to return, and that the forces of supply and demand will be the day after the only player in directing global energy prices. The consensus is that prices will find its equilibrium over the next year after that lead to fall to most high-cost production fields such as oil shale, which is likely to outweigh the most efficient producers. Industry and reached the crucial moment when the attention went to the OPEC meeting on 27 November last year to see whether the organization next to the sacrifice of the market share in an attempt to support prices. But senior OPEC producers led by Saudi Arabia refused to sacrifice their share in the market, because they understand that this will not lead to price subsidies, but will lead to the loss of quotas and prices together, in the words of Saudi Arabian Oil Minister Ali al-Naimi.
Suhail Al Mazroui: the new producers assume their responsibilities to balance the market for the benefit of everyone
The OPEC's decision to decline the price of Brent crude to $ 58 a barrel in the few days following the decision, to lose about half their value since the peak year, while prices of late amounted to more than $ 115 a barrel in mid-June
The controversy continues in the month of December that Saudi Arabia closed all doors particular the possibility of reducing the OPEC production, while al-Naimi said last week that the organization will not cut production, even if the price of $ 20 a barrel.
But as long as Saudi Arabia intervened in the past to balance the world oil market by raising or lowering production, because it is the only country which has a large surplus in production capacity, according to the International Monetary Fund.
US oil production has risen by 40 percent since 2006, but the cost of production in the United States more than doubles the cost of production in the Middle East.
Summarizes Naimi OPEC question frank attitude: "Is it logical that the product reduces efficiently produced while the product continues to poor efficiency in production?". He said that it "unfair" for OPEC because it is not the main oil producer in the world. "
And saw the second half of the year compete senior OPEC producers to cut prices to retain their share in the market, which is likely a large rise in production. Indeed, Saudi Arabia has made no secret that they can raise production if you find new buyers.
It is expected that the supply of Iraq to rise up to more than 700 thousand barrels in the next year, after the agreement entered into with the Kurdistan region of Baghdad, Iraq's exports of up to about 3.3 million barrels per day next year. The cost of producing a barrel of OPEC countries the rate of not more than $ 7, while up in some shale oil fields between 50 and 60 and sometimes more than $ 70. According to the oil minister of the UAE Suhail bin Mohammed Mazrui, "the OPEC quota declared and fixed shall not exceed 30 percent of the global market, so it makes no sense to be responsible for addressing the effects of pumping excess amounts of by others."
He stressed that any change in production policy must be well thought out and that the new producers assume their responsibilities to balance the market for the benefit of everyone. The results of a quick and sudden OPEC's decision, and after four days on the resolution, while Asian refiners suspended imports of American rock capacitors, to return to the Middle East crudes cheaper.
And expanded influence after the announcement of Chevron freeze plan to drill for oil in the region of the Canadian Arctic, while Marathon Oil has reduced its capital spending next year by about 20 percent. It is expected that Russia's production decline due to lower investment needed to continue production.
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