Recent reforms scrapped the requirement that Petrobras own a 30 percent stake in all pre-salt oil fields, essentially opening the door to private international companies. As a result, Brazil's oil production is flourishing.
Likely with window dressing.
While growth in shale has garnered a lot of attention, overlooked is the fact that Canada and Brazil are expected to add a combined 2 mbd over the next five years.
Despite continued rapid growth in U.S. shale, the global oil market could see price spikes and increased volatility at the beginning of next decade.
The reasons for the positive demand revisions come from every region of the global oil market, with stronger economic activity the main reason for the more optimistic outlook.
The group has been adamant about putting together a united front to show that it will follow through with production cuts and counter critics who doubt its willingness or capability to do so.
The past two years have reminded many observers that black gold is tough to beat, no matter what commitments countries make, and that countries like China still have a lot of room to grow.
The intense levels of collusion on a global scale between politicians of producer states, OPEC representatives, and even traders are a clear reminder that the cartel's operations undermine a fair, free, and transparent oil market. OPEC argues that its decision last week was in the interests of price stability, but others see the exact opposite.
The International Energy Agency warns that the age of fossil fuels is far from over. Governments around the world need to step up their policy efforts to find alternatives in the transportation sector in order to keep demand in check.
Last year, consumers globally saved 870 million barrels of oil as a result of efficiency improvements since 2000. Germany and China have been more successful in maintaining fuel economy gains during low oil prices.