Turkmenistan is likely to join an OPEC-led cut in oil supply aimed at supporting prices, sources in OPEC and the industry said, potentially enlarging the output reduction slightly.
OPEC, Russia and other producers agreed last year to curb production by 1.8 million barrels per day (MMbbl/d) for six months from Jan. 1.
Oil prices have since gained support but global inventories remain high, pulling crude back toward $50 a barrel and putting pressure on OPEC to extend or possibly add to the cuts at least until the end of 2017.
OPEC has been urging other producers to join the supply pact and, together with participating non-member countries, meets to set policy on May 25 in Vienna. Turkmenistan, along with Egypt, are also due to attend.
“Egypt and Turkmenistan are expected to attend the conference for the first time,” said one of the sources, declining to be identified.
In April, Saudi Energy Minister Khalid al-Falih said there was consensus with Central Asia over oil markets and sticking to production cut levels. Falih made his comment after arriving in Turkmenistan as part of a regional tour.
Turkmenistan is a small producer, pumping about 250,000 bbl/d. A lack of infrastructure limits its exports, according to the U.S. Energy Information Administration.
A government official in Turkmenistan declined to comment.
“There could be more cuts if there are other non-OPEC countries that will join the agreement,” another OPEC source said, adding that Turkmenistan was expected to do so.
Egypt is attending the meeting on May 25 as an observer but will not be lowering supply, Petroleum Minister Tarek El Molla said on May 11. Egypt’s oil consumption outpaces its production, which is estimated at 700,000 bbl/dd.
“Egypt will participate as an invitee but is not cutting production. We are short on products and we do not export crude,” he said.
Recommended Reading
Beach Town Corpus Christi Grows into America’s Top Energy Port
2024-01-16 - The Port of Corpus Christi is the U.S.’ largest energy export gateway and in terms of total revenue tonnage as increased midstream investments have opened export markets for the prolific Permian Basin.
NAPE: Turning Orphan Wells From a Hot Mess Into a Hot Opportunity
2024-02-09 - Certain orphaned wells across the U.S. could be plugged to earn carbon credits.
Gushing, Ohio: EOG Joins Ascent, Encino in Top Oil Wells
2024-01-22 - EOG’s latest wells in its new Ohio oil play are rolling into state public records, while Ascent Resources and Encino Energy are reporting the biggest producers. All three are landing 3-milers. Some are 3.5 miles.
Chevron Hunts Upside for Oil Recovery, D&C Savings with Permian Pilots
2024-02-06 - New techniques and technologies being piloted by Chevron in the Permian Basin are improving drilling and completed cycle times. Executives at the California-based major hope to eventually improve overall resource recovery from its shale portfolio.
Commentary: The Oil and Gas Future—Believe It or Not
2024-01-10 - If you believe the IEA’s analysis, plenty of oil and gas companies won’t survive very far into the future.