Energy Minister Dan Brouillette stated at a video conference of the G20 countries.
The world’s largest oil powers are trying to agree on a joint significant reduction in oil production at the talks of energy ministers of the G20 countries, which are held on Friday in a video conference. Oil prices have collapsed as a result of the global coronavirus pandemic.
The main oil markets were already closed on Friday when the G20 energy ministers started a video conference organized at the initiative of Saudi Arabia. On the eve of OPEC+ members, which includes the largest oil producers and Russia, discussed a reduction in production by 10 million barrels per day, but these measures, according to observers, will not be enough, as the demand for oil as a result of the coronavirus pandemic fell by 30%.
Anti-epidemic measures taken by authorities around the world have led to a decrease in demand for fuel, which has affected the budgets of oil-producing countries and the American oil industry – the US produces mainly shale oil, which is vulnerable to low prices due to the high cost of production.
“We call on all countries to use all means at their disposal to help reduce surpluses of oil,” US Energy Secretary Dan Brouillette said during the G20 talks, adding that he was “extremely disappointed” that Moscow and Riyadh have not yet signed an agreement to reduce production.
The OPEC + Pact provides for a reduction of 10 million barrels per day if Mexico joins the agreement and another 5 million barrels if other countries, including the United States, join. Norway and Canada, which are not members of OPEC+, have already promised to reduce oil production.
Dan Brouillette said that the US can reduce oil production by the end of 2020 by 2-3 million barrels per day. The Energy Secretary also said that the US will buy oil for its strategic reserves.
Fatih Birol, head of the International Energy Agency, expressed hope that the G20 talks “will help restore much-needed stability in the oil markets.” On Thursday, he said that oil-importing countries can provide some support to the market by additionally buying oil for their strategic reserves.