NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

CERAWEEK-OPEC, US energy chiefs to huddle again in Houston as rapport deepens

Published 2023-03-06, 04:06 p/m
© Reuters. An attendee walks as top energy executives and officials from around the world gather during the CERAWeek 2023 energy conference in Houston, Texas, U.S., March 6, 2023.  REUTERS/Callaghan O'Hare
IX
-
ENRY
-

By Liz Hampton and Ron Bousso

(Reuters) -U.S. energy executives are set to meet privately with top OPEC officials on Monday for at least the fifth year at a Houston conference, people familiar with the matter said, as the former rivals have become joint beneficiaries of enormous global demand for their oil and gas.

The secretive dinner has been held almost annually at the CERAWeek energy conference. This year's event will be the first with Haitham Al Ghais as secretary general for the Organization of the Petroleum Exporting Countries. He stepped into the role in August.

Top executives from U.S. companies, including the country's No.1 natural gas producer EQT Corp (NYSE:EQT) and its rival Chesapeake Energy Corp (NYSE:CHK), were among those invited, according to sources.

U.S. executives who attend do not publicly discuss the dinners between the once-fierce adversaries. OPEC had viewed shale as an untamed force that undercut its revenue by bringing vast new oil supplies to market. More recently, relations have improved after investor demands for U.S. shale profits put the brakes on booming production.

This year's private dinner comes at a tumultuous time for global markets with the war in Ukraine disrupting global oil and gas flows while enriching both producer groups.

U.S. oil producers have restrained spending and scaled back production growth in favor of investor returns. OPEC, in the meantime, has committed to cut members' production by 2 million barrels per day, setting a floor on prices.

U.S. oil output is set to rise less than 600,000 bpd, down from around 2 million bpd in 2018 - a breakneck pace that had sparked tensions with OPEC as its market share declined.

In a show of how the acrimony has fallen away, U.S. officials at the conference last year - just after Russia's invasion of Ukraine - gifted the former Secretary General Mohammad Barkindo a bottle of "Genuine Barnett Shale," an homage to the region that helped spark the U.S. shale revolution.

“I was a good friend of Secretary Barkindo,” said Pioneer Natural Resources (NYSE:PXD) CEO Scott Sheffield in an interview on Monday.“I’ve not met the current Secretary, so I know nothing about how things will go,” he added.

© Reuters. An attendee walks as top energy executives and officials from around the world gather during the CERAWeek 2023 energy conference in Houston, Texas, U.S., March 6, 2023.  REUTERS/Callaghan O'Hare

He declined to say whether he would attend Monday’s dinner, but has attended it in the past.

Fewer OPEC officials are present at this year's annual CERAWeek conferencing, with ministers from key countries including Saudi Arabia and Iraq absent from the attendee list.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.