ABU DHABI / WAM
Suhail Al Mazrouei, Minister of Energy and Industry, has said that the current recovery of the oil market is due to market forces which benefit OPEC and shale oil producers alike. He made his comments while taking part in the UAE Ministry of Energy and Industry Knowledge Series panel discussion entitled, “Oil and Gas Outlook to 2020, What Stage of Cycle are We in?” on the inaugural day of ADIPEC at the Abu Dhabi Exhibition Centre. The minister said that shale oil producers are needed as part of the equation, “We cannot exclude them, or think that they are working against us,” he said, adding, “Yes, they are one of the beneficiaries of the correction in oil prices.”
He also referred to the forecast of oil demand in the past, saying that now it is better than what was predicted. He said, “When we started the deal, the expectations were about how much the shale oil producers would produce, and if you check the data you will find that they were not achieving the level of production that they were thinking.” He said that when the oil prices went down, the market applied significant pressure on the services companies, so the shale oil producers have to work harder to improve.