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In a month on the latest supply report now despite the oil -- here in the US.
My next guest says it will have little impact on the global market joining me now -- can't bulls professor at Duquesne university and director of the energy policy research group professor thanks again for joining us let me just talk quickly about OPEC.
They meets tomorrow they're not expected to do anything with regard to output.
But there is somewhat of a disagreement about the impact them on OPEC countries.
All the US is booming shale oil production especially among the African.
Members of OPEC is this going to be a real game changer for them.
Well actually there are couple of.
Situations occurring here that are contributing to this dynamic.
One is actually the unconventional.
Oil production among OPEC members itself.
Is increasing in fact.
Well before 202015.
To 18% of the crude that Saudi Arabia will be moving into the international market.
Actually is going to be on conventional crude.
So there's plenty of it available worldwide.
Other than in the United States the essential disagreement in OPEC.
Will take place between those who have -- -- conventional production.
And those who have access to the to the newer varieties of unconventional oil.
That being said the cleavage is there an OPEC is not going to be particularly deep.
And even though there is a considerably greater amount of extract a -- volume that we -- initially anticipated -- North America that's not gonna have much of an impact.
Because the demand among developing nations is about to have to go right through the ceiling.
So until countries like Saudi Arabia the top producer in effect -- not particularly concerned by this development that this so called energy independence that's becoming a big story here in the US.
Now and in fact if you take a look at the last OPEC strategic report which came out a couple of years ago.
OPEC itself assumes that by the time they reached 2050.
They're not going to be selling a single barrel of oil to the United States they've already written off North America.
And they're beginning to recognize that the unconventional production and other parts of the country of the world.
-- North Africa for example is going to be changing the dynamics of the market.
OPEC's future lies with Asia and all of the members of OPEC know that interest things what does this all mean -- prices.
I believe actually that were in a restrained period.
Of of volatility in the prices themselves we've got a pretty narrow band trading band in the United States between 85 and a hundred dollars and that's likely to be the band we're going to be experiencing near term.
That price restraint he's actually generating certain opportunities within the US market itself.
Among those conduct -- companies that actually have better regional.
And have basins in which they can generate oil and gas.
And I -- -- less price at the well head so we're actually going to see some opportunities in the United States.
And also the midstream companies that are moving it from point a to point B those are likely to be the real opportunities moving forward.
Very interesting stuff we could talk a lot longer time always runs out but can't maul us professor at decaying university thanks so much.
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