Organization of Petroleum Exporting Countries (OPEC) aims to Cut Crude Oil Output

United States: The organization of Petroleum Exporting Countries (OPEC) plans to meet on 30-Nov-2016 with the aim of reducing the output levels of crude oil and to bring stability in crude oil prices. OPEC also plans to reduce the crude oil production by 600,000 barrels a day from Non-OPEC member countries such as Russia. However, the decision to reduce the production of crude oil is facing challenges from countries such as Saudi Arabia, Iraq, etc.

TechSci Research depicts that the decision to reduce the crude oil production by OPEC members would result in stabilizing the crude oil prices. Due to lower prices, the production of crude oil in many OPEC countries has become expensive thereby impacting the crude-oil industry negatively. The consensus to freeze the output level of crude oil would help to revive the oil and gas industry in smaller oil producing countries. This would also encourage more investment in oil and gas industry. The oil exploration activities are also likely to witness a major boost as the prices are stabilized. This would encourage the demand for drilling fluids used in the exploration of oil wells.

According to a recent released report of TechSci Research, “Global Drilling Fluids Market By Type, By Application, By Region, Competition Forecast & Opportunities, 2011 - 2021”, the global market for drilling fluids is forecast to grow at a CAGR of over 8% during 2016-2021, on account of anticipated increase in oil & gas drilling activities. In 2015, North America dominated demand for drilling fluids across the globe, followed by Asia-Pacific. Moreover, water based drilling fluids dominated global drilling fluids market, due to their environment friendly properties and cost effectiveness.