Opec, allies weigh output cut to stave off new surplus

ABU DHABI / AGENCIES

Many Organization of the Petroleum Exporting Countries (Opec) and allied oil producers see a need to cut output to stave off a new surplus, a key member of the coalition said, as delegates gathered in Abu Dhabi on Sunday.
Twenty-six of the world’s leading oil and gas sector leaders gathered in the UAE capital, for a high-level industry forum focussed on the evolving dynamics of the energy landscape and the opportunities for hydrocarbon produced energy to support global growth, today and in the future.
HH Sheikh Hamed bin Zayed Al Nahyan, Chief of the Abu Dhabi Crown Prince’s Court, met with the CEOs attending the third annual Abu Dhabi CEO Roundtable.
The roundtable brought together senior executives, representing many of the world’s leading oil, gas and petrochemical companies. The exclusive, invitation only, event was hosted by Dr Sultan bin Ahmad Sultan Al Jaber, Minister of State and Adnoc Group CEO.
A number of global producers agree they should pump less oil in 2019, and a reduction of 1 million barrels a day would be a good number, according to Mohammed Al-Rumhy, Oman’s Oil Minister.
The producers are considering a range of cutbacks, including a decrease in output by as much as 1 million barrels a day, according to delegates.
A technical committee representing the coalition projected that a global oil surplus will resurface in 2019 if they continue pumping at current rates, according to delegates familiar with its conclusions.
The roundtable, held under the Chatham House Rule to encourage openness of discussion, focussed on the critical role oil and gas companies will play in enabling a step change in global growth as the fourth industrial age unfolds, in particular how advanced new technologies, such as artificial intelligence, predictive data and analytics and blockchain will enable oil and gas companies to help meet the world’s growing energy needs.
Dr Al Jaber said, “This important gathering underlined Abu Dhabi’s convening power as a global hub for the world’s oil, gas and petrochemical industries and its position at the center of the conversation shaping the future of our industry. The Fourth Industrial Age will create many new opportunities for the oil and gas industry to contribute to growth and people’s prosperity for decades to come. This roundtable was an important opportunity for us to share insights and perspectives on the future of our industry and to deepen the understanding of the factors shaping the evolving energy landscape and how best to navigate them.”