OPEC News and Developments


When it comes to mineral and royalty rights, the latest OPEC news and developments includes a lot of vital information for mineral rights owners:


  • On Monday, June 12th, 2017, it was reported that oil prices’ most recent selloff has left onlookers a bit confused, meaning the fundamentals look poor with dismal drawdown in crude oil stocks. However, the general feeling is that an extension of the OPEC deal should create a rebalancing of the market over the next few quarters.
  • OPEC Secretary General, Mohammed Sanusi Barkindo stated, on February 3, 2017 that, OPEC continues to remain firm in its mission to be a consistent, stabilizing force in the energy industry as it acknowledges interrelated issues of providing oil, promoting prosperity and protecting the environment. He then added, “Looking towards the future, oil and gas will continue to play a very important role supplying the world’s energy.”
  • In January of this year, Saudi Arabia’s energy minister, Khalid Al-Falih, stated that OPEC countries could cut oil production again this year, according to the Associated Press. Al-Falih made this statement while speaking at the World Economic Forum at the Swiss ski resort of Davos. He said he “would not exclude” another cut to follow last year’s agreement if higher prices don’t stick because of variables outside producers’ control, such as a potential collapse in demand. “I think Plan B is to be resilient and to be flexible and to deal with the circumstances,” he said. Al-Falih added that these cuts are due to expire in June wand that an extension is also possible.
  • According to IEA director  Fatih Birol, December, 12, 2016, the global use of oil is increasing. At a time when oil fields are depleting, oil demand will surpass the 100 million barrel-per-day mark. While oil fields continue to deplete, the need for new yearly production capacity continues to be in demand to meet the growing need. The last couple of years have seen oil company investment budgets substantially reduced. Investment in new projects has been affected, which also affects future production capacity. Because of this, The International Energy Agency and others continue to be uneasy that low investments will result in a shortage of oil and higher prices.

In other news:

  • The U.S. is expected to produce more gas this year than originally thought, according to the EIA.
  • The possibility of Libya hitting the IMM in the future is very real, if some contractual issues are ironed out, after recently exceeding 800,000 barrels of oil per day.
  • Recently, it has been discovered that so much new production online can be produced from an old well by re-fracking that it’s just like drilling a new well. No mention is made regarding whether re-fracking makes it possible to extract gas that would otherwise remain trapped in the foundation, or just speeds up the extraction of gas that would come out anyway.

For more information on mineral and royalty rights, contact Gallatin Natural Resources at

(214) 414-0387 (Dallas) or (432) 203-0007 West Texas.