U.S. shale oil boom exacerbate differences within OPEC

"Wall Street Journal" reported that the U.S. energy industry boom is intensifying OPEC (OPEC) internal differences.hydraulic fracturing The organization had to face in the global oil trade revolution of the environment, such differences may result in Africa and the Arab rift between Member States.

On Friday, OPEC meeting in Vienna, focused on rising U.S. shale oil production impact, and spawned differences. Most vulnerable to the impact of the OPEC member countries should be urged to do when oil prices fall further reduce production preparation. Gulf members of OPEC representative said that "We are to some problems."

OPEC oil and the United States that produce shale oil level almost African Member States, (such as Algeria and Nigeria),frac sand from North America are suffering the worst effects of the oil boom. Nigeria's Petroleum Resources Minister Madhu Exeter that the U.S. shale oil is a "serious concern."

In comparison, the Gulf States, especially Saudi Arabia, robust growth in the U.S. shale oil shock lightest. You know, in all members of OPEC, only the Gulf countries have cut production flexibility. However, several delegates said, despite having this flexibility, however unlikely Gulf States agreed at its meeting on Friday cut.

This will exacerbate problems in recent years, OPEC's power struggle. It is understood that require the use of high oil prices to fill domestic spending and offset the decline in production affect Iran, Venezuela and Algeria, often to the Saudi-led Gulf conflict. As we all know, the Gulf states are financially strong to withstand lower oil prices.

Of course, OPEC had to overcome in the face of external threats when a series of internal differences.ceramic ball It is worth mentioning that in 2008 during the outbreak of the global financial crisis, OPEC members agreed to reduce the more than 400 million barrels of daily output, aimed at suppressing the price of oil fell. However, the differences between the representatives have said that in view of the North American OPEC oil supply rose for impact is not evenly distributed, so the use of coordinated production cuts to support oil prices will become more difficult.