The Secretary General of OPEC: oil will be difficult to rise above $60 per barrel because of the freking in USA

The Secretary General of OPEC: oil will be difficult to rise above $60 per barrel because of the freking in USA


NEW YORK, February 23. /Corr. Ivan Sawyers/. Active gas extraction using freking (hydraulic fracturing, hydraulic fracturing) in the US will prevent the cost of oil rise above $60 per barrel. This opinion was expressed on Monday the Secretary General of the Organization of countries-exporters of oil (OPEC) Abdullah al-Badri during a speech at the annual international oil and gas conference IHS CERAWeek in Houston (Texas).

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“I don’t know how we will coexist with this”, – quotes the American Agency Bloomberg of a word al-Badri on shale oil in the United States. The OPEC Secretary General indicated that if the price of oil on world markets will increase to $60 per barrel, will increase production of American companies that use hydraulic fracturing method.

“Any increase in the cost instantly responds the oil shale industry and will cover all the reduction (production)”, – he added. According to al-Badri, the situation on the oil markets is now more complex than ever before. “If in 2017 or 2018, prices will go up, the increase will be limited to shale oil in the USA, he explained. That’s what is different this time”.

Currently negotiations are underway about the possibility of freezing the oil in the world. So, on February 16 in Doha, Ministers of oil of Saudi Arabia, Qatar, Venezuela, included in OPEC and Minister of energy Alexander Novak discussed the possibilities of improving the price situation on the oil market. According to the Ministry of energy of the Russian Federation, the parties expressed their willingness to save, on average, in 2016 oil production at the level of January of the current year, if other countries – oil producers will join this initiative.

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