U.S. Jittery Over OPEC’s Decision To Maintain Output | Independent Newspapers Limited
Newsletter subscribe


U.S. Jittery Over OPEC’s Decision To Maintain Output

Posted: Jun 10, 2015 at 12:19 am   /   by   /   comments (0)

By Phillip Oladunjoye,  Lagos, with agency report


Energy regulators in the United States are worried over the decision of the Organization of Petroleum Exporting Countries (OPEC) to keep production levels static, describing the decision as oil war.

According to a report by UPI, a Texas energy regulator said the U.S. government would need to overturn a ban on crude oil exports as a counter-offensive to the oil war waged by OPEC.

OPEC had during its meetings last week in Vienna opted to keep production levels static, noting that “market stability remains a common objective” amid signs of modest demand growth in the second half of the year.

According to the report, David Porter, a member of the Texas Railroad Commission, the state’s energy regulator, sent a letter to state lawmakers describing OPEC’s decision as an act of aggression.

“OPEC’s choice to flood the market with crude is a clear and direct effort to stifle successful American drilling, using artificially cheap fuel as their weapon,” he said.

The report noted that oil prices are down about 40 percent from one year ago as U.S. oil production increases in a global economy still emerging from recession, explaining that the low price of oil has translated to less spending on oil exploration and production and preliminary data from March show crude oil production in Texas averaged 2.31 million barrels per day, down from the 2.34 million bpd reported in February.

Porters said keeping the exploration and production sector strong was vital for American energy security, shielding the U.S. economy from the whims of adversaries like oil-rich Russia and Venezuela.