Published on : Feb 11, 2015
Russian oil producer said the US shale energy expansion could possibly become the next bubble to talk about.
The company accuses OPEC for de-establishing the energy market and allowing the oil prices to halve in past six months. His predictions for traction in the fracking department in the US would start after 2020. The US production increase is not that well supported by reserves, added Sechin in the conference held in London earlier on Tuesday.
Most of the oil companies have collapsed by cutting investment that were warned by the lower oil production and that could start to cause supply shortages too - by the end of the present year.
The prices have depended after November only when OPEC chose not to cut the output price. OPEC has lost the game here, said Rosneft boss.
Today, the share of OPEC is stable - around 39% but the company lost the unity of all its members and in many cases for not respecting some members.
OPEC delegates blame the non-OPEC energy producers such as Mexico, Russia, Kazakhstan, and the US shale oil production for providing oversupplies to the market. Certain ministers decided that they could only act in tandem with the non-OPEC producing companies to just help balance the market.
Sechin has spoken to many officials from OPEC and outside that group but has no agreement on the cutting supply that was reached or that OPEC left in terms of output.
Russia leads the world in oil production with an average of 10.58m barrels a day, as calculated last year. However, low prices and Ukraine crisis pose risk to the key source of revenue. According to Sechin, the recent sharp decline in oil prices was not tallied.
The IEA issued an outlook on the U.S. Oil sector that would ride out the drop in prices and Russia would likely lose the focus in the industry as a main player. For the next two years the oil prices will stay at $60 a barrel.