Saudi Arabia to remain oil exporting kingpin says IEA boss

IEA Executive Director Fatih Birol told the World Economic Forum in Davos that despite a rapidly changing global energy sector, the Kingdom would remain a key player. (Reuters)
Updated 22 January 2019

Saudi Arabia to remain oil exporting kingpin says IEA boss

  • IEA Executive Director Fatih Birol: The Middle East and especially Saudi Arabia will remain the largest exporter of oil for many years to come
  • Fatih Birol: For this year, let’s pay special attention to US shale because some observers last year made wrong assumptions and underestimated US shale growth

LONDON: Saudi Arabia will remain the largest global oil exporter for years to come despite the growth of the US oil sector, according to the chief of the International Energy Agency (IEA).

IEA Executive Director Fatih Birol told the World Economic Forum in Davos that despite a rapidly changing global energy sector, the Kingdom would remain a key player.

But he added that the importance of the US shale sector should not be underestimated as it had been in the past.

“The Middle East and especially Saudi Arabia will remain the largest exporter of oil for many years to come,” he told an energy panel at the annual gathering of global political and business leaders in the Swiss mountain resort.

Official data from Saudi Arabia released on Monday showed the Kingdom’s crude oil exports in November rose to 8.235 million bpd from 7.7 million in October.

“The US produce a lot of oil but most of the time they use that at home for domestic purposes. So even though US is now a very important oil producer, the Middle East will remain the largest exporter of oil.

“But for this year, 2019, let’s pay special attention to US shale once again because some of the observers last year I think made wrong assumptions and underestimated US shale growth,” said Birol.

The huge growth of the US shale oil industry has transformed the energy landscape in the US, which until last month had been a net importer of oil for the last 75 years.

Oil prices fell nearly 2 percent on Tuesday, pushed lower by signs of a slowdown in China.


Africa development bank says risks to continent’s growth ‘increasing by the day’

Updated 18 August 2019

Africa development bank says risks to continent’s growth ‘increasing by the day’

  • The trade dispute between US and China has roiled global markets and unnerved investors
  • African nations need to boost trade with each other to cushion the impact of external shocks

DAR ES SALAAM: The US-China trade war and uncertainty over Brexit pose risks to Africa’s economic prospects that are “increasing by the day,” the head of the African Development Bank (AfDB) told Reuters.
The trade dispute between the world’s two largest economies has roiled global markets and unnerved investors as it stretches into its second year with no end in sight.
Britain, meanwhile, appears to be on course to leave the European Union on Oct. 31 without a transition deal, which economists fear could severely disrupt trade flows.
Akinwumi Adesina, president of the AfDB, said the bank could review its economic growth projection for Africa — of 4 percent in 2019 and 4.1 percent in 2020 — if global external shocks accelerate.
“We normally revise this depending on global external shocks that could slowdown global growth and these issues are increasing by the day,” Adesina told Reuters late on Saturday on the sidelines of the Southern African Development Community meeting in Tanzania’s commercial capital Dar es Salaam.
“You have Brexit, you also have the recent challenges between Pakistan and India that have flared off there, plus you have the trade war between the United States and China. All these things can combine to slow global growth, with implications for African countries.”
The bank chief said African nations need to boost trade with each other and add value to agricultural produce to cushion the impact of external shocks.
“I think the trade war has significantly impacted economic growth prospects in China and therefore import demand from China has fallen significantly and so demand for products and raw materials from Africa will only fall even further,” he said.
“It will also have another effect with regard to China’s own outward-bound investments on the continent,” he added, saying these could also affect official development assistance.
Adesina said a continental free-trade zone launched last month, the African Continental Free Trade Area, could help speed up economic growth and development, but African nations needed to remove non-tariff barriers to boost trade.
“The countries that have always been facing lower volatilities have always been the ones that do a lot more in terms of regional trade and do not rely on exports of raw materials,” Adesina said.
“The challenges cannot be solved unless all the barriers come down. Free mobility of labor, free mobility of capital and free mobility of people.”