Abu Dhabi: Global trends facing the energy industry such as a shale gas and lower oil prices will be discussed as part of the sixth Gulf Intelligence UAE Energy Forum in Abu Dhabi on Tuesday.
Energy minister Suhail Al Mazrouei will give a talk on UAE energy industry outlook 2020 and will provide his views on oil prices and other important issues affecting the energy sector.
Oil prices have been plummeting since June last year due to weak demand and record shale oil production from the US. Organisation of the Petroleum Exporting Countries (Opec) which met in November did not take any measures to cut the output.
From $115 in June, oil price fell to $50 this month and is likely to go down further.
An expert based in Abu Dhabi said he “sees little chance of a rebound” in oil prices. “There seems too much division and even discord within Opec members,” said Adrian Nizzola, partner in Simmons and Simmons, an international law from specialising in energy.
“Saudi has made it clear that it needs to defend its market share against US shale oil production and other competitors. It has said it is offering discounts in order to keep buyers.”
He said major non Opec producers like Russia have little economic choice to keep producing as much as they can in order to maximise revenues to meet domestic budgets.
“Don’t be surprised to see the slide downwards continuing to $40 per bbl for Brent,” he said.
Meanwhile Venezuelan President Nicolas Maduro is touring Gulf countries in order to seek support to shore up oil prices. He met Iranian president Hassan Rouhani on Saturday and will be meeting officials in Saudi Arabia on Sunday. Venezuela like Iran is under economic strain due to drop in oil prices.
“Doubtlessly, cooperation between convergent countries in Opec would neutralise some powers’ plans against Opec and would help stabilise prices to an acceptable level for 2015,” Rouhani said in the meeting with Maduro according to Iranian petroleum ministry’s website Shana.
Saudi Arabia has earlier denied about a conspiracy and said market forces will dictate oil prices.
Former prime minister of Labanon Fouad Siniora will give a keynote lecture on outlook for Middle East four years from Arab spring during the forum. Lord Howell of Guildford, former UK secretary of state for energy, and Xu Xiaojie, adviser to China’s national energy administration, will be among those taking part in the event.
Discussion will focus on oil prices, shale production, outlook for energy security, demand and supply and the world’s energy infrastructure and resilience.
