Oil cartel OPEC expects to have to pump up considerably less oil in the coming years. The market share of the organization for oil-exporting countries will therefore fall to around 2025. The reason for the lower oil production of the OPEC countries is the large amount of American shale oil that is flooding the market.
The amount of shale oil that the Americans produce is rising faster than what OPEC took into account last year. In 2025, the United States will account for one fifth of oil production, the oil cartel now predicts.
Next month, OPEC countries will meet to decide whether they want to further limit production, says Secretary-General Mohammed Barkindo. With this they would like to prevent that there will be overproduction next year and as a result falling oil prices.
OPEC now still holds around 35 percent of the oil market. That will fall to around 32 percent in 2023, the organization expects. From 2029 the production of shale oil in the US starts to decrease again and the market share of OPEC increases again. The oil cartel expects to have 40 percent of the market in 2040. At that time, oil is still the most important source of energy, according to OPEC.
Lesley Woutersen, one of the co-founders of the EconomicInform gives away all of his free time to the project. He is interested in stock exchange and digital assets. Lesley can be reached by lesley.woutersen@economicinform.com.
