As Pioneer Chairman Scott Sheffield put it, shale companies share an interest in a more balanced market and “preventing overheated prices.” Unlike OPEC (at least Saudi Arabia), many shale producers are facing limits to their ability to ramp up production. Permian producers are finding themselves constrained, not necessarily by the vagaries of geopolitics and the maneuvering of OPEC, but by takeaway capacity and infrastructure constraints close to home.
Q: What are the major takeaways from the OPEC meeting that took place over the weekend in Vienna?
Croft: The biggest takeaway is that OPEC managed to hold it together.
During the trip, the delegation visited the Cleveland Foundation, a key contributor to the economic and civic vitality of the region, to learn more about Cleveland’s ongoing efforts to attract investment into new growth sector such as advanced energy.
The Global Energy Center’s David Livingston sat down to discuss the Cleveland Foundation’s history, mission, and current priorities in clean energy and grid resilience with Stephen Love, a program officer with the Cleveland Foundation.
The first piece in this series focused on the development and benefits of geothermal utilization in Iceland, where geothermal resources are abundant and serve as the main source for home heating and roughly 30 percent of power production. In an area with regular volcanic activity, many would assume that geothermal potential is only to be found in areas like Iceland, where such geographical conditions are present.
However, that is not necessarily the case.
During the trip, the delegation visited Talan Products, a metal stamping company that produces parts for solar systems and LED bulbs, to learn how Cleveland’s manufacturing base makes it a natural location for building the infrastructure of the new energy economy.
The Global Energy Center’s David Livingston sat down to discuss Talan’s history, success, and advanced energy contributions with Steve Peplin, CEO and founder of Talan Products.
However, the biggest elephant in the room won’t even be there. The United States, while not a member of OPEC or the non-OPEC group that agreed to the cuts, has, and continues to play, an outsized role in the oil market because of both the continued strength of US shale and the actions of the Trump Administration.
What is at stake is the final leg of a complex set of projects referred to as the Southern Gas Corridor (SGC), a project intended to carry an initial 10 billion cubic meters (bcm) of Azeri gas to Italy, with the potential to double in capacity and provide gas to customers beyond Italy. Almost all the required infrastructure has already been built.
However, in the nearly two and half years between the end of international sanctions and President Trump’s May 2018 decision to reinstate US sanctions, Iran accomplished very little in terms of revitalizing its oil industry.