A year ago, high-cost producers were told by OPEC to ‘get out’ of the market, but the message has changed
By Tracy Johnson, CBC News Posted: Mar 08, 2017
Mohammad Sanusi Barkindo, secretary general of OPEC, says he sees a significant role for the oilsands in coming years, particularly if producers innovate. (Tracy Johnson/CBC)
In an about-face from a year earlier, OPEC says there is room in the oil market for U.S. shale producers, the Canadian oilsands and other higher-cost production.
Mohammad Sanusi Barkindo, the secretary general of OPEC, said that he met with U.S. shale producers this week in Houston, ahead of the annual CERAWeek energy conference that is organized by the research and consulting firm IHS Markit.
Those shale producers along with hedge funds met with Barkindo to talk about the state of the oil market, how to rebalance supply with demand and draw down the vast amount of oil still in storage around the world. It’s another sign that the cartel has capitulated on a price war that it has never quite admitted to.
Barkindo said that because demand is growing and supply is expected to tighten in the coming years, he sees a significant role for the oilsands, particularly if producers continue to innovate.