Ops Macron tells the truth: only the US can solve the problem of oil shortages
Oil production in the UAE and Saudi Arabia is nearing its limit, French President Emmanuel Macron told his US counterpart at this week's G7 meeting. So to produce more oil, the G7 can only ask the US …
The French president was referring to a conversation he had with the Emirati chief, as reported by Reuters . According to the conversation cited, the UAE was already "at its peak," Macron told Biden. It is unclear whether he was referring to the maximum allowed by OPEC quotas or the maximum capacity.
“And then he [Sheikh Mohammed bin Zayed al-Nahyan] said that the Saudis can increase by 150 [thousands of barrels a day]. Maybe a little more, but they don't have huge capabilities for six months , ”Macron also said, as quoted by Reuters.
Saudi Arabia's production quota was increased by 114,000 bpd in June and will be increased by another 170,000 bpd in July, but the OPEC quota expires well before six months, at the end of August, after which Saudi Arabia would be free to increase production as it sees fit.
Bloomberg then cited UAE Oil Minister Suhail al Mazrouei that the UAE was actually pumping close to the baseline set by the OPEC + agreement. This baseline for the Emirates was 3.168 million bpd.
"In light of recent media reports, I would like to clarify that the UAE is producing almost to the maximum of our production capacity based on the current OPEC + production line," said Al Mazrouei, quoted by Reuters.
The news about Saudi Arabia is potentially more concerning, as the Kingdom is believed to have more than 1 million bpd of spare capacity that can be tapped within three months.
If it can actually add only 150,000 bpd to current production levels, as predicted by capacity, that means the world's reserve oil production capacity is much smaller than previously believed by all major international energy agencies.
The Kingdom currently produces around 10.5 million bpd. According to OPEC's latest monthly production report, the May average was 1.424 million bpd and this month is expected to be higher, in line with the OPEC + production resumption agreement.
OPEC's number one has a nominal production capacity of 12 million barrels per day and plans to increase it by about one million barrels per day. The UAE's nominal capacity, according to Reuters, is 3.4 million bpd, and the Emirates are planning to expand it to 4 million bpd.
At this point, with the exception of Russia, only the US could seriously increase oil production, but they would have to cancel many of the environmental regulations set by the Biden administration.
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The Ops Macron article tells a truth: only the US can solve the oil shortage problem comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/ops-macron-dice-una-verita-solo-gli-usa-possono-risolvere-il-problema-della-scarsita-di-petrolio/ on Wed, 29 Jun 2022 06:00:49 +0000.