Speaking at the 12th Eurasian Economic Forum in Verona, Italy, Rosneft Chairman Igor Sechin spoke about the state of the global black gold market.
Sechin's statement seems to have resonated well beyond Verona. "If we talk in the previous forums in Verona about the fact that there are three controllers in the global oil market, namely Russia, Saudi Arabia and the United States, there is currently one controller, the United States," he said. Nations, this should be taken for granted. "
Valentin Katasonov, a researcher at the University of International Relations in Moscow, said that the oil market controller should be strategically positioned on the world market and be able to manage black gold prices effectively.
Caesar Black Gold
At last year's forum in Verona, Sechin reported that the three controlling parties in the oil market (Russia, Saudi Arabia and the United States) will outperform in the next 10 to 15 years in an equal manner. But a year later, Sechin radically changed his mind, noting that the US had become the "Caesar" of the world market for black gold.
The author argues that Igor Sechin tried to use gentle words to draw attention to the threat posed by the prospect of the US actually becoming a "tsar" in the global black gold market.
In fact, the United States is actively building its oil potential, but it is far from the top in oil exports.
According to the ranking of the top ten countries in terms of oil exports according to the results of last year, Saudi Arabia ranks first, followed by Russia, Iraq, Canada, UAE, Kuwait, Iran, the United States and Nigeria and Kazakhstan.
|Saudi Arabia ranks first in oil export (Reuters)|
Last year, the United States ranked eighth among the top ten oil exporters, stripping it of the nickname "Caesar" oil market so far.
After the events this year, and as a result of US sanctions on Iran, Tehran may leave the list of top oil exporters. In contrast, US exports have increased, and it is not unlikely that this year will rank sixth or fifth in the list of the largest oil exporters, according to the author.
According to IEA forecasts, in 2024 the United States is likely to rank Russia and become second only to Saudi Arabia.
In this sense, Saudi Arabia is expected to maintain the title of oil czar until 2024, but only in a theoretical way.
Some believe that the oil boom in the United States took place as Donald Trump came to power, but it began early in the time of the US financial crisis between 2007 and 2009 when oil prices began to rise and the shale oil revolution began.
In 2012, oil production in the United States increased by 15%, and daily production exceeded 6.5 million barrels. In 2015, the United States increased production to nearly 10 million barrels per day, enabling it to enter the list of three leaders.
According to BP, in 2016 Saudi Arabia's share of world oil production was 13.4%, Russia's share was 12.6%, and the US share was 12.4%.
According to last year's results, Sechin pointed out that Russia increased production by 3%, Saudi Arabia by 14%, while the United States increased production by 26%.
Sechin attributed this to Washington's failure to take into account environmental conditions and not to take into account the damage associated with the production of energy from shale oil.
|Sechin's remarks in Verona are a call for Russia's exit from OPEC (Reuters)|
Previously, Canada was a major buyer of US oil, while Washington now supplies 40 countries with its oil products.
US exports of black gold are growing dynamically. Over the past three years, US oil exports have grown exponentially.
In 2018, the volume of oil exports to EU countries increased ninefold by 22.7 million barrels.
The imposition of economic sanctions on major producers and exporters of black gold (Iran, Venezuela and Russia) is the main means of US expansion in the global oil market, according to the writer.
In 2018 alone, Tehran's oil supplies to the European market fell from 27.3 million tons to 18.5 million.
The writer pointed out that Moscow's strategy has damaged the Russian oil industry, and contributed to the advancement of Washington's "oil" interests in the world.
In fact, continuing to adhere to the OPEC agreement and reduce oil exports in order to keep the prices of black gold high would enable the United States to strengthen its influence in the extraction and export of oil. Sechin's statement in Verona is also a call for Russia's exit from OPEC.