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Subject
OPEC-non-OPEC deal compliance
Significance
Strong compliance with production cut allocations among OPEC members is being balanced by increases from exempt members Libya and Nigeria. There has also been a rise in Iranian output, allowed under the terms of the agreement. Higher prices have added impetus to the revival of US shale output.
Impacts
Shale drilling costs have fallen, and productivity has risen, making US shale expansion and contraction balance at 50 dollars per barrel.
US shale will take market share from high-cost output such as oil sands rather than OPEC, assisting the positive US economic outlook.
The shift in the cost structure of oil output will boost investment in non-US shale, while non-US, non-OPEC oil drilling will struggle.
Keywords:
International,
INT,
Iran,
Iraq,
Libya,
Nigeria,
Russia,
Saudi Arabia,
United States,
economy,
foreign investment,
foreign policy,
foreign trade,
gas,
growth,
hard commodities,
oil,
summit,
talks
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2017
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