Saudi Arabiaconvinced its fellow OPEC members that it was not in the group’s interest to cut oil output however far prices may fall. Suppliers from outside the Organization of Petroleum Exporting Countries should cut “irresponsible” output, U.A.E. Energy Minister Suhail Al Mazrouei said in Abu Dhabi yesterday. Even if non-OPEC producers were to offer cuts, OPEC probably wouldn’t follow suit, Saudi Oil Minister Ali Al-Naimi said. The biggest oil producers outside OPEC are the U.S. and Russia.
Oil fell about 20 percent since OPEC chose to maintain its production target at a Nov. 27 meeting, seeking to defend market share rather than prices. The highest U.S. crude output in at least three decades is contributing to a glut that Qatar estimates at 2 million barrels a day.
Hard-hit countries like Iran, Russia and Venezuela suspected the move was a coordinated effort between the oil kingdom and its longtime ally, the U.S., to weaken their foes’ economies and geopolitical standing.
A new natural gas field off Israel’s Mediterranean coast may hold about 3.2 trillion cubic feet (tcf) of gas, an exploration group said on Sunday after analysing a 3D seismic survey of the area.
If the estimate is accurate, reserves for the Royee prospect, located about 150 km (93 miles) offshore along its maritime borders with Cyprus and Egypt, would be the third largest discovered in Israeli waters, said Israel Opportunity, a partner in the group.
The company provided a range for estimated reserves of 1.9 tcf to 5 tcf, with a best estimate of 3.2 tcf.
The drilling of an exploration well is expected to begin in December 2015 and cost about $100 million, Israel Opportunity’s chief executive, Eyal Shuker, told Reuters.
The discoveries in 2009 and 2010 of the huge Tamar and Leviathan fields nearby, which hold combined reserves of about 33 tcf, triggered an exploration boom in the eastern Mediterranean.
Israeli Opportunity holds a 10 percent stake in the Royee project. Ratio Oil has 70 percent and Italy’s Edison, the Italian power company controlled by France’s EDF, holds 20 percent.