2018 sees in­crease in elec­tric­ity pro­duc­tion, ex­ports

Azer News - - Business - By Le­man Mam­madova

ALast month daily oil pro­duc­tion in Azer­bai­jan amounted to 790,000 bar­rels, of which 721,000 fell to oil, and 69,000 to con­den­sate.

Every day 617,000 bar­rels of oil, 69,000 bar­rels of con­den­sate and 13,400 bar­rels of oil prod­ucts were ex­ported.

In Jan­uary 2018, Azer­bai­jan pro­duced an av­er­age of 814,600 bar­rels per day, in Fe­bru­ary – 806,000 bar­rels, in March – 794,000 bar­rels, in April – 785,700 bar­rels, in May – 801,000 bar­rels , in June - 792,000 bar­rels, in July 773,000 bar­rels, in Au­gust – 774,000 bar­rels, in Sep­tem­ber – 796,000 bar­rels, in Oc­to­ber – 783,000 bar­rels, in Novem­ber – 801,000 bar­rels.

OPEC Joint Tech­ni­cal Com­mit­tee was cre­ated on Jan­uary 22, 2017 to mon­i­tor the im­ple­men­ta­tion of coun­tries' com­mit­ment to cut oil pro­duc­tion. The Or­ga­ni­za­tion of the Pe­tro­leum Ex­port­ing Coun­tries (OPEC) is a per­ma­nent, in­ter­gov­ern­men­tal Or­ga­ni­za­tion, cre­ated at the Bagh­dad Con­fer­ence on Sep­tem­ber 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Ara­bia and Venezuela. It was cre­ated by oil-pro­duc­ing states to con­trol pro­duc­tion quo­tas. Cur­rently, the Or­ga­ni­za­tion has a to­tal of 15 Mem­ber Coun­tries. OPEC in­cludes Al­ge­ria, An­gola, Venezuela, Gabon, Iran, Iraq, Congo, Kuwait, Qatar, Libya, the United Arab Emi­rates, Nige­ria, Saudi Ara­bia, Equa­to­rial Guinea and Ecuador. Mem­bers of the or­ga­ni­za­tion con­trol about two thirds of world oil re­serves, they ac­count for up to 45 per­cent of all world pro­duc­tion and half of ex­ports.

OPEC and non-OPEC pro­duc­ers reached an agree­ment in De­cem­ber 2016 to cur­tail oil out­put jointly and ease a global glut after more than two years of low prices. OPEC agreed to slash the out­put by 1.2 mil­lion bar­rels per day from Jan­uary 1, 2019.

Non-OPEC oil pro­duc­ers such as Azer­bai­jan, Bahrain, Brunei, Equa­to­rial Guinea, Kaza­khstan, Malaysia, Mex­ico, Oman, Rus­sia, Su­dan, and South Su­dan agreed to re­duce out­put by 558,000 bar­rels per day start­ing from Jan­uary 1, 2017.

OPEC and its part­ners de­cided to ex­tend its pro­duc­tion cuts till the end of 2018 in Vi­enna on Novem­ber 30, as the oil car­tel and its al­lies step up their at­tempt to end a three-year sup­ply glut that has sav­aged crude prices and the global en­ergy in­dus­try.

The 5th OPEC and non-OPEC Min­is­te­rial Meet­ing was held in Vi­enna, Aus­tria, on De­cem­ber 7, 2018.

The meet­ing par­tic­i­pants de­cided to ad­just the over­all pro­duc­tion by 1.2 mil­lion bar­rels per day, ef­fec­tive as of Jan­uary 2019 for an ini­tial pe­riod of six months. The con­tri­bu­tions from OPEC and the vol­un­tary con­tri­bu­tions from non-OPEC par­tic­i­pat­ing coun­tries of the ‘Dec­la­ra­tion of Co­op­er­a­tion’ will cor­re­spond to 0.8 mil­lion bar­rels per day (2.5 per­cent), and 0.4 mil­lion bar­rels per day (2 per­cent), re­spec­tively.

The next meet­ing of OPEC and non-OPEC for­mat will be held in Vi­enna in April 2019 to re­vise the agree­ment.

Saudi Ara­bia is cur­rently the world's largest oil ex­porter.

Rus­sia is the sec­ond largest crude oil pro­ducer in the world after the United States. Its oil pro­duc­tion level of 11.4 mil­lion bar­rels per day will be re­duced by about 2 per­cent, to 228,000 bar­rels.

Some coun­tries have been ap­plied a com­pro­mise within the frame­work of the agree­ment on re­duc­tion of oil pro­duc­tion. Iran has been com­pro­mised as well as Libya and Venezuela, con­sid­er­ing U.S. sanc­tions.

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