SEVERE WX : Winter Storm Warning - Winter Weather Advisory View Alerts

Russia and Saudi Arabia aren't worried about American oil boom

Russia and Saudi Arabia aren't losing sleep over an American shale oil boom."Demand is growing... I don't thin...

Posted: Jan 25, 2018 2:29 AM
Updated: Jan 25, 2018 2:29 AM

Russia and Saudi Arabia aren't losing sleep over an American shale oil boom.

"Demand is growing... I don't think we should worry," Saudi energy minister Khalid al-Falih said at the World Economic Forum in Davos.

Al-Falih, who was speaking at a CNNMoney panel, said that global demand will hit 120 million barrels in the next 25 years.

The lack of fear is shared by Russia, currently the world's top oil producer.

"We will need to satisfy the demand and shale is just one of the ways to satisfy the market," said Russian energy minister Alexander Novak.

The International Energy Agency said earlier this month that "explosive" increases in U.S. oil output would push it ahead of Saudi Arabia this year and put it in a position to challenge Russia.

The agency, which monitors energy market trends for the world's richest countries, raised its outlook for U.S. production in 2018 to a record 10.4 million barrels. The biggest gains will come from shale.

Davos 2018: Complete coverage

Both Saudi Arabia and Russia depend on oil exports for a large part of their government revenue.

Saudi-led OPEC and other major producers including Russia agreed to cut production in late 2016, a response to oversupply that sent prices to as low as $26 a barrel earlier that year. They agreed in November 2017 to extend the cuts until the end of this year.

Countries that signed up to the accord have largely kept their word. But the group's efforts at supply restraint have been undermined by the U.S., according to the IEA, which said that a "remarkable" increase in U.S. production last year offset roughly 60% of the cuts.

Oregon Coronavirus Cases

Data is updated nightly.

Cases: 154062

Reported Deaths: 2194
CountyCasesDeaths
Multnomah31723527
Washington21001211
Marion18279284
Clackamas13289175
Lane10127124
Jackson8224110
Umatilla761481
Deschutes592258
Yamhill374564
Linn354956
Malheur333958
Polk301642
Klamath276854
Douglas240252
Benton230316
Josephine230349
Jefferson194127
Coos140119
Union127119
Columbia124121
Wasco121926
Lincoln112520
Hood River106129
Morrow104114
Crook77918
Clatsop7766
Baker6467
Curry4116
Tillamook4092
Lake3746
Harney2716
Grant2221
Wallowa1424
Gilliam531
Sherman530
Wheeler221
Unassigned00
Eugene
Cloudy
43° wxIcon
Hi: 48° Lo: 37°
Feels Like: 36°
Corvallis
Cloudy
43° wxIcon
Hi: 47° Lo: 35°
Feels Like: 37°
Roseburg
Cloudy
42° wxIcon
Hi: 51° Lo: 35°
Feels Like: 38°
North Bend
Cloudy
46° wxIcon
Hi: 49° Lo: 36°
Feels Like: 42°
KEZI Radar
KEZI Temperatures
KEZI Planner

LATEST FORECAST

Community Events