UAE Energy Minister and President of the Conference of the Organisation of the Petroleum Exporting Countries (OPEC) Suhail Al Mazrouei has stressed the US shale oil industry is “not a threat” to oil producing members of the group, according to the Arab News.
Quoted at an event in London, Al Mazrouei said it was important the industry does not replicate the “mistakes of the past,” where producers became “so excited” by the increasing shale output that they overproduced and caused a glut in inventories, leading to a downturn in the sector.
From the middle of 2014 oil prices began a severe downward trajectory.
Al Mazrouei said OPEC hopes to meet US shale oil producers at an event in the US next month when they will look at the outlook for shale.
Al Mazrouei re-iterated the commitment of the 24 OPEC and non-OPEC countries to continue to cut oil production by 1.8mn barrels per day until the end of the year.
“We are focused on what we agreed in 2017 to work together to balance the market,” he said, denying suggestions of discussions about an end to the deal. “I don’t think we are talking about exit strategy for the time being, we are focused on one target, which is balancing the market,” he said.