Norway, Egypt and Turkmenistan are ready to reduce Oil Production by joining the agreement of #OPEC and independent producers. The real impact can only be seen in the participation of Norway since the production of the other two countries is too small. However, experts generally doubt that the list of participants in the agreement may expand -- saying from the very beginning that there were too many verbal interventions and outright lies surrounding the topic of reducing production.
Norway, Egypt and Turkmenistan can join the agreement to reduce oil production, it was reported on Tuesday by Reuters -- referring to Kuwait's oil minister, Al Marzooq.
OPEC agreement
In particular, it is reported that the head of the Ministry of Energy of Saudi Arabia, Khalid A. Al-Falih, held a meeting with representatives of the potential member countries of the agreement, and they expressed their readiness for cooperation. Earlier, Al-Falih mentioned that joining the OPEC agreement of reducing production for a period of nine months could help in reducing world oil reserves.
At the end of last year, Norway expressed public support for the idea of reducing production. In early 2017, OPEC Secretary General Mohammed Barkindo talked about the possible inclusion of Egypt. Later, the media reported that Turkmenistan could also join.
Russian Energy Ministry's words on OPEC
A week ago, the head of the Russian Energy Ministry, Alexander Novak, said that five new participants could join the agreement at once, but they did not mention them, saying only that they were all "famous exporters." The general director of InfoTEK-Terminal, Rustam Tankayev, said that only Norway can influence the world market.
"Egypt produces about 27 million tonnes of crude oil per year (about 0.54 million barrels a day), but it consumes 37 million tonnes of petroleum products," he said. "Petroleum products have to be imported, and their consumption in Egypt is growing, so reducing oil production for this country is completely unrealistic."
Tankayev stressed that Turkmenistan produced about 13 million tonnes last year, with daily production at about 0.26 million barrels.
Barrel consumption per day
In the agreement concluded in November 2016, the largest reduction (496 thousand barrels per day) was undertaken by Saudi Arabia, which accounted for about 4.6% of the country's total production. Turkmenistan production will yield only about 12,000 barrels per day.
Norway, according to OPEC, in the first quarter produced about 2.09 million barrels per day. And it is clear that there is a tendency to increase production, as in March, production was fixed at 2.15 million barrels per day. According to Rustam Tankayev, Norway has slowly but surely increased production for several years.
OPEC meeting will be held in Vienna
OPEC countries and independent producers are going to meet in Vienna on May 25th to decide on the agreement to reduce oil production.
But, the question remains: Will cooperation continue?
Vitol declaration
Earlier, the world oil trading leader, Vitol declared that all agreements on limiting production are meaningless until they are joined by China, India, and, most importantly, the United States.
Later on Tuesday, however, Norway said that it would not participate in the meeting on May 25, and does not intend to cut production.
