“In a shale revolution world, no country is an island. Everybody will be affected." — International Energy Agency executive director Fatih Birol
Quick take: Comments like this about U.S. production growth — and projections for much bigger output to come — encapsulate a dominant theme at CERAWeek.
- “We cannot ignore the growth coming from shale. It is coming very strongly and it will affect not only the behavior, decisions, strategy of the established producers, but others as well,” Birol told reporters yesterday.
Big picture: OPEC officials responded yesterday by emphasizing a message that the major market participants are all in this together, and that another downturn isn't in anyone's interest.
OPEC Secretary General Mohammed Barkindo also highlighted plans to transform the production-limiting deal with Russia and other non-OPEC producers into some kind of broader, lasting alliance.
- But he declined to speculate on whether the current deal that cut their output by 1.8 million barrels per day would be extended past 2018.
The intrigue: Barkindo and other representatives of OPEC nations dined in Houston last night with the heads of big U.S. shale producers.
- Barkindo said ahead of the meeting that the discussion would not be about prices or production cuts, but instead a broader dialogue similar to his dinner with shale producers at the event last year.
- Bloomberg says the dinner had "small talk on oil and not much else."
New wrinkle: While the focus has been on OPEC's discussion with large independent U.S. operators, there's outreach to the biggest energy companies too.
- S&P Global Platts reports: "OPEC ministers are increasingly pressuring the heads of US oil majors to take action to stabilize the global market, Nigeria's oil minister told reporters Monday."
Go deeper: CNBC has a good look at OPEC's positioning in Houston here.