for Saudi Arabia
The Saudis continue shifting its goals for where oil prices should be. The Kingdom is now signaling that it wants to increase prices to $80-$100 per barrel in order to enhance the valuation for its planned initial public offering.
A SAFE analysis shows that there were 1,480 terrorism incidents against oil and gas facilities worldwide between 2011 and 2016, a 387 percent increase from twenty years ago.
Stay on top of the latest developments in oil markets, geopolitical risk, and alternative fuel vehicles with the SAFE policy team's Chart of the Week.
Modernized fuel-efficiency standards have been a cornerstone of energy policy since the 1970s, reducing the negative effects of petrostates on the U.S. economy.
Circumstances in the oil markets are expected to change, perhaps dramatically, early next decade. While U.S. production is expected to grow by a massive 2.5 Mbd in 2018-19, increases will thereafter slow considerably.
Although they have been caught off guard by U.S. growth, OPEC members and their non-OPEC partners have successfully regrouped and will likely be well positioned if fundamentals eventually tighten even more.
A clumsy exit strategy, producers cheating on quotas, or a rapid response from U.S. shale producers could undermine the effectiveness of the deal. Conversely, the potential for higher prices is also a stark possibility.
An extension is virtually guaranteed but today’s overwhelming consensus masks real divisions, complications and misgivings.
As OPEC and its non-OPEC allies gather in Vienna this week, it will mark the three-year anniversary of the cartel’s pivotal decision to produce all out and allow prices to fall sharply.
OPEC will attempt to manage perceptions in both the physical and financial markets—but given its track record, it will not likely produce stability and certainty, but instead ambiguity and volatility.