Colver Technologies Says OPEC Strategy Set To Crush US Oil
According to Colver Technologies, OPEC's strategy of pursuing market share at the expense of market prices is working.
- (1888PressRelease) November 03, 2015 - According to Colver Technologies, the Organization of Petroleum Exporting Countries' strategy for prioritizing market share over support for prices has begun to pay off as US oil production returns to levels not seen in a year. While the OPEC strategy is unlikely to completely wipe out US oil producers, the cartel hopes to limit growth in their output.
OPEC's policies have collapsed prices and forced US operators to cutback personnel and drilling but the measures have not been without pain for OPEC's members. While the architects of the strategy, Saudi Arabia and Kuwait, may have the foreign currency reserves and flexibility to curb spending despite drastically reduced income from crude oil sales, the likes of Algeria, Venezuela and Libya are facing worrying levels of political unrest as the slump impacts upon budgets.
"This has taken much longer than anyone would have predicted but, in the end, one can't ignore cold, hard commercial realities," said Gus Stuyvesant, COO at Colver Technologies.
The EIA (Energy Information Administration) estimates that US oil production will decline to 8.86 million barrels a day while it predicts demand for OPEC-produced oil will increase to 31.1 million barrels a day from the 29.3 million in 2014.
"Of course, those estimates hinge on US authorities' maintaining the ban on US crude exports but if, somehow, the ban were to be lifted, a very different dynamic could emerge that would throw the whole market into turmoil," explained Stuyvesant.
Colver Technologies says OPEC may face a revolt among its poorer members at the next meeting in Vienna, Austria with rumors circulating that Venezuela will formally urge members to curb production to support prices.
About Colver Technologies
Colver Technologies' modular GTL systems revolve around the Fischer-Tropsch reactor, a conversion technology developed in the 1920s by Franz Fischer and Hans Tropsche in Germany in 1925. It facilitates the production of significantly cleaner-burning liquid fuels like diesel and jet fuel from natural gas that contains no sulfur. We are committed to doing our part to drive uptake of GTL fuels as global efforts to reduce emissions increase and have invested heavily to ensure the continuing development of this highly attractive alternative to conventional energy production.
Contact Colver Technologies:
Longzhimeng Asia-Pacific Center
22 Pangjiang Street
Dadong, Shenyang, Liaoning
China
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