Organization of Petroleum Exporting Countries (OPEC) aims to Cut Crude Oil Output
United States: The organization of
Petroleum Exporting Countries (OPEC) plans to meet on 30-Nov-2016 with the aim
of reducing the output levels of crude oil and to bring stability in crude oil
prices. OPEC also plans to reduce the crude oil production by 600,000 barrels a
day from Non-OPEC member countries such as Russia. However, the decision to
reduce the production of crude oil is facing challenges from countries such as
Saudi Arabia, Iraq, etc.
TechSci Research depicts that the
decision to reduce the crude oil production by OPEC members would result in
stabilizing the crude oil prices. Due to lower prices, the production of crude
oil in many OPEC countries has become expensive thereby impacting the crude-oil
industry negatively. The consensus to freeze the output level of crude oil
would help to revive the oil and gas industry in smaller oil producing
countries. This would also encourage more investment in oil and gas industry.
The oil exploration activities are also likely to witness a major boost as the
prices are stabilized. This would encourage the demand for drilling fluids used
in the exploration of oil wells.
According to a recent released report of TechSci
Research, “Global
Drilling Fluids Market By Type, By
Application, By Region, Competition Forecast & Opportunities, 2011 - 2021”, the global market for drilling fluids
is forecast to grow at a CAGR of over 8% during 2016-2021, on account of
anticipated increase in oil & gas drilling activities. In 2015, North
America dominated demand for drilling fluids across the globe, followed by
Asia-Pacific. Moreover, water based drilling fluids dominated global drilling
fluids market, due to their environment friendly properties and cost
effectiveness.