Expert Proposes A Single Proposal To Confront The Decline In Oil Prices And Issues A Warning To Producing Countries, 2 OCT

 Expert Proposes A Single Proposal To Confront The Decline In Oil Prices And Issues A Warning To Producing Countries

Baghdad Today - Baghdad   Oil expert Haider Al-Batat warned oil-producing countries today, Monday (September 30, 2024), noting that shale oil production is more economically feasible.

Al-Batat said in an interview with Baghdad Today that "the rise in oil prices leads to a slowdown in industrial growth and a decrease in demand for oil, with an increase in the trend towards the use of alternative energy. This represents a threat to oil-exporting countries, and the main beneficiary of this situation is the United States of America."

He added, "US shale oil production is only economically viable when the price per barrel exceeds $65. If the price of oil falls below $65, US oil production becomes economically unviable."

He explained that "this will force America to reduce its production of shale oil, which will make the market need 10 million barrels of oil, and this will lead to an increase in demand for oil produced by OPEC member states to compensate for the gap resulting from the decline in American production."

The oil expert concluded by saying, “This scenario is the only solution to confront the decline in oil consumption and the shift to alternative energy.

It will also increase industrial growth, thus pushing oil-producing countries to increase oil production to keep pace with the increasing global demand. Thus, they compensate for the decline in price by increasing quantities.

This in turn increases the costs of using alternative energy, which is ultimately much higher than the price of fossil energy, leading consumers to turn away from it and continue to rely on fossil energy while developing and upgrading it to be environmentally friendly.”

According to the US Energy Information Administration, the United States has the largest recoverable resource of shale oil in the world, amounting to 78.2 billion barrels so far, followed by Russia with 74.6 billion barrels.

Although China is a relative newcomer to the scene, it holds a significant position with reserves of 32.2 billion barrels, contributing 7.7% of the global share.

Argentina, Libya and the United Arab Emirates also made the top ranks, indicating the diverse distribution of shale oil resources around the world.  LINK