API Welcomes OPEC+ Agreement
The American Petroleum Institute (API) has welcomed the latest OPEC+ agreement to cut global oil production.
“This is a significant agreement which will foster increased stability in energy markets to the benefit of both American energy consumers and producers,” API President and CEO Mike Sommers said in a statement posted on the organization’s website on the 12th April.
“We commend the president’s leadership and his administration’s diplomatic engagement to urge nations to bring global oil supply in line with the lower energy demand as a result of the pandemic,” he added.
In the statement, Mr Sommers outlined that “significant challenges” remain in the weeks and months ahead for the sector, “and nearly every other”, but added that US oil and natural gas – and the American workers who produce, transport, service, refine and ship it – “will be critical to enabling our economic recovery”.
Mr Sommers also highlighted that projections for long-term demand “remain strong”.
“Prior to Covid-19, the world demanded 100 million barrels of oil per day for transportation, industrial operations, manufacturing and by-products used in every sector of the global economy – from paints and asphalts to makeup and iPhones – and projections show long-term demand for oil and natural gas around the world remain strong,” he stated.
The API, which is based in Washington, DC represents all segments of America’s oil and natural gas industry, according to its website. Formed in 1919, the organisation has more than 600 members, its website shows.
Earlier this month, the API joined a White House meeting on the state of the energy industry.
Following the meeting between President Trump, administration officials and executives representing US natural gas and oil companies, Mr Sommers said the API was encouraged by the President’s “strong diplomacy” with Saudi Arabia and Russia.
Mr Sommers also revealed that during the meeting, the API urged the administration to avoid US policies “which could do more harm than good for American producers”.
Source: Rigzone