Saudi Crown Prince Says OPEC and Russia Consider 10-20 Year Oil Cooperation

Saudi Arabia recruited Russia and other producers to collaborate on oil supply curbs in 2017 after oil prices crashed

Alexander Novak, Russia's energy minister, looks on as Khalid Al-Falih, Saudi Arabia's energy and industry minister, speaks during a news conference following the 173rd OPEC meeting in Vienna, on Nov. 30, 2017.
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OPEC is seeking a long-term deal to cooperate on oil output controls with Russia and other non-OPEC producers, said Saudi Crown Prince Mohammed bin Salman.

“We are working to shift from a year-to-year agreement to a 10-20 year agreement,” the crown prince told Reuters in an interview in New York. “We have agreement on the big picture, but not yet on the detail.” 

Saudi Arabia recruited Russia and other producers to collaborate on oil supply curbs in 2017 after oil prices crashed and the Saudi oil minister said last week Riyadh hoped to extend that deal into 2019.

The crown prince said a flotation of 5 percent of state Saudi oil company Aramco could take place at the end of 2018 or early 2019, depending on market conditions.

U.S. energy exports now rival those of Russia and Middle Eastern nations and put the U.S. on track to be one of the world's largest oil exporters. In one of the most stark examples of the surge in U.S. oil production, a new report from Bloomberg shows that the UAE has imported oil from the U.S. for the first time in history, making the Middle East an American oil importer.

Bloomberg notes, "The cargo was shipped from Enterprise Products Partners LP’s Houston terminal on the tanker Seoul Spirit, which arrived Jan. 31 at the Port of Ruwais in Abu Dhabi, according to ship tracking data compiled by Bloomberg. Until last year, the UAE relied on Qatar for its condensate supply."

Surging U.S. shale production is poised to continue pushing U.S. oil output to more than 10 million barrels per day - toppling a record set in 1970 and crossing a threshold few could have imagined even a decade ago. The U.S. government forecasts that the nation’s production will climb to 11 million barrels a day by late 2019, a level that would rival Russia, the world’s top producer.

The economic and political impacts of soaring U.S. output are breathtaking, cutting the nation’s oil imports by a fifth over a decade, providing high-paying jobs in rural communities and lowering consumer prices for domestic gasoline by 37 percent from a 2008 peak.