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OPEC Chief Says US Won't Stay Self-Reliant on Oil

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OPEC Chief Says US Won't Stay Self-Reliant on Oil

LONDON - OPEC's chief on Tuesday cautioned crude-producing countries against cutting spending on projects to boost their capacity in response to an International Energy Agency report predicting the United States will not need to import oil in the future.

Abdalla Salem el-Badri, secretary general of the Organization of the Petroleum Exporting Countries, said reining in such investment would be disastrous for the world because the U.S. won't remain self-sufficient long.

If countries don't invest in efforts to produce more hydrocarbons, "there will be a shortage [of oil]. The price will be very high," he said in an interview.

"We want other [non-U.S.] producers to invest."

On Monday, the IEA predicted the U.S. will overtake Saudi Arabia as the world's largest oil producer by 2020 thanks to a shale output boom.

El-Badri said the U.S. can be self-sufficient and export for a short while. "Then they will have to go back as importers," he said. "This is not sustainable in the long term."

While urging oil-producing nations not to cut back on investment, he said this should not be construed as hostility to U.S. oil production.

"We have nothing against them," he said. He described shale oil as "a new addition, a great discovery," adding "there is room for any kind of energy."

The 12 OPEC countries produce more than a third of the oil consumed by the world every day.

Copyright (c) 2012 Dow Jones & Company, Inc.

WHAT DO YOU THINK?

Post a Comment Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Dallas | Nov. 16, 2012
Its not just the amount of drilling needed, more importantly it is the need for refining capacity. Not a single major new refinery has been permitted for construction here in the U.S. in over two decades! Sure, existing refineries have retrofitted or expanded but that isnt nor will it be enough to make a serious dent in needs. I love how quickly the OPEC crowd wants to come rain on our parade. "Not hostile" towards our efforts? Who are they kidding?

Rich Slagle | Nov. 14, 2012
While is may be a grand projection to think by 2020 we (USA) will be self reliant on energy the fact is that it is unlikely at best as our appetitie will likely increase faster than we can keep up. I think it is safe to say Government is way too optimistic and OPEC will still be in control world wide and keep their share of the world s production and prcing, Time will tell but I agree that world investing to keep the industry strong will be key to all countries claim to be the top producers.

David Freeburg | Nov. 13, 2012
Smart man-I think he is right to a point. But I do not believe we will ever be allowed to be self sufficient-one govt agency or another will never allow the private sector to do the amount of drilling needed to accomplish this goal.


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