David Prosser: Russia is the big winner from the Opec debacle
Thursday 09 June 2011
Outlook For anyone wondering why BP has been prepared to put up with so much grief as it strives to increase its presence in Russia, yesterday's ill-tempered Opec meeting provides an answer. In a world where Opec is incapable of agreeing a common goal, let alone exerting the control it once did over global oil production, Russia becomes even more powerful than its status as the world's largest oil producer might already suggest.
With Opec failing to agree how to proceed yesterday, it looks as if we may now see a small increase in production from those members who backed this strategy – particularly Saudi Arabia.
But that is unlikely to reduce the upwards pressure on the oil price. For one thing, most of the countries, including Saudi Arabia, are already operating at close to full capacity. For another, they are increasingly heavy users of their own oil, limiting export supplies.
Where might future increases in oil production come from? Well, BP's latest Global Energy Review, coincidentally published yesterday morning while Opec was busy arguing, reveals that Russia (along with the US and China) was responsible for the biggest production increases last year. Amongst Opec members, only Qatar and Nigeria really ramped up production, but they have much smaller proven reserves than Russia (which, by the way, was also responsible for a third of the world's increased production of natural gas). In Saudi Arabia, production was barely up at all.
The BP report also puts into context the contribution currently being made by renewable energy, with all the different renewables combined meeting just 1.8 per cent of the world's energy needs last year. That's three times more than a decade previously and renewable energy production is now growing faster than oil and gas – but still.
Oil remains all-important, in other words. In which case, the oil producers with the ability to service the growth in demand for oil will be all-important too. RIP Opec, all-hail Russia.
- 1 Venezuela Expo Tattoo 2015: Extreme body art from 'Vampire Woman' to 109mm earlobes
- 2 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 Canadian woman suing police who locked her in van with sex offender who then raped her
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Putin opponent reveals Russian President's daughter's secret identity
Ball pool for adults opens in London
Gay couple buy JebBushForPresident.com web domain, and refuse to sell
Canadian woman suing police who locked her in van with sex offender who then raped her
9 reasons Greece's experiment with the radical left is doomed to failure
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
Stephen Fry explains what he would say if he was 'confronted by God'
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...