NEW YORK – OPEC could be facing a new internal clash on how it chooses
to respond to the increasing U.S. output of shale oil, reports the Wall Street
Journal.
“Rising American output is rewriting global oil-trade patterns and
deepening existing fault lines within the powerful exporters' group, limiting
its ability to mount a collective response — including possible production cuts
— ahead of a crucial meeting in Vienna Friday,” writes the newspaper, adding
that although no change is expected during the meeting to OPEC’s oil
production, it will mark “the first stage of a thorny debate on shale's oil's
impact that is already showing signs of dividing the group.”
Nigeria, for example, has deemed U.S. shale oil “a grave concern.”
Nigerian oil minister Diezani Alison-Madueke told the newspaper that shale oil “has
been identified as one of the most serious threats for African producers.”
The newspaper writes that U.S. crude production has increased to a
21-year high, thanks to new technologies that are tapping into large resources
of oil from shale rock in North Dakota and Texas. At the same time, however,
exports from three of OPEC's African members, Nigeria, Algeria and Angola, to
the U.S. have dropped to their lowest level in decades: 41% in 2012, according
to the U.S. Department of Energy. In contrast, Saudi Arabia oil shipments to
the U.S. increased 14% in 2012.
OPEC is taking some steps to address this new problem, notes the
newspaper, adding that behind closed doors, the group is preparing studies to
evaluate the impact of U.S. shale oil on demand for its crude, a topic that
will also be discussed at Friday’s meeting.