A senior Russia politician has claimed the strategic oil production falls by some OPEC+ members will result in an immediate loss in market share but will eventually stabilise global markets.
Russian Deputy Prime Minister Alexander Novak, speaking to a Middle Eastern news outlet, said the group is “temporarily losing market share, but we are looking forward not to today, but to the future”.
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He added that energy industries in oil and gas exporting countries will continue to develop, which will then allow investments to continue, but that “requires prices that satisfy both exporters and importers”.
A recent report from GlobalData, Offshore Technology’s parent company, indicated the global oil and gas industry is now refocusing on fossil fuels and away from the energy transition as heightened energy concerns amid the Ukraine war place more emphasis on security,
As such, many companies have scaled back their focus on technologies and investments that would help them decarbonise their operations.
Last week, Novak publicly stated that OPEC+, formed in 2016 in response to falling oil prices as US hydrocarbon output notably increased, is not planning any immediate talks around oil production cuts or increases.
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By GlobalDataNovak said at the time that the ten-nation group, which works within a “collaborative framework” with the Organization of the Petroleum Exporting Countries (OPEC), is still planning to gradually add supply to the market this coming December.
He added that all countries “are generally fulfilling their obligations under the agreement [and] we are observing and monitoring the situation on the market in terms of the balance of supply and demand”, as reported by a Russian news service.
The comments followed reports that Saudi Arabia, a crucial member of both OPEC and OPEC+, is trying to bring back more oil production in December as it seeks to regain market share.
OPEC+ had initially planned to begin slowly reversing the 2.2 million barrels per day (mbbl/d) of cuts from October.
In July, OPEC announced that with just a few members exceeding their agreed limits, oil production from OPEC has remained constant for the third month in a row.
The intergovernmental body produced an average of just under 27mbbl/d in June, some 80,000 barrels a day less than during the previous month.
