VIENNA: OPEC’s strategy of letting the oil market balance itself is working as investment in the industry is falling and any recovery will take time to bring new supplies, a senior Iraqi oil official said.
“OPEC let the market work and so far they are succeeding, because it’s affected investment,” said Falah Alamri, the head of Iraq’s State Oil Marketing Organization (SOMO). Iraq is OPEC’s second-largest producer.
“Investment now is declining. When investment comes to the market it will take time to produce oil — one year, two years.”
“So far, so good,” Alamri said, asked whether he thought OPEC’s strategy was working. “The fields that should survive are the low-cost fields. The high-cost fields should go out.”
“OPEC let the market work and so far they are succeeding, because it’s affected investment,” said Falah Alamri, the head of Iraq’s State Oil Marketing Organization (SOMO). Iraq is OPEC’s second-largest producer.
“Investment now is declining. When investment comes to the market it will take time to produce oil — one year, two years.”
“So far, so good,” Alamri said, asked whether he thought OPEC’s strategy was working. “The fields that should survive are the low-cost fields. The high-cost fields should go out.”
