The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, agreed on Sunday to reduce output by 9.7 million barrels per day (bpd) for May and June in an effort to prop up oil prices as the coronavirus outbreak slashes fuel demand.
But they are not alone. Numerous other nations have committed to bringing down worldwide supply, even though some are mostly talking about cuts that come in response to falling prices. In total, output cuts could total 19.5 million bpd, including G20 nations and oil purchases for reserves.
Here is what non-OPEC+ countries have said:
UNITED STATES:
U.S. Secretary of Energy Dan Brouillette said last week he expected U.S. production to fall by roughly 2 million bpd by the end of 2020. The department’s forecasts suggest the declines will take more time. The U.S. Energy Information Administration (EIA) said in April that output should average roughly 11.1 million bpd at the end of 2021, down from 12.8 million bpd in the fourth quarter of 2019. [EIA/M]
Numerous U.S. shale companies have detailed plans to reduce output, along with oil majors. In late March, Chevron Corp (CVX.N) reduced its expectations for the Permian Basin, the largest U.S. shale formation, to 475,000 bpd by the end of the year, from 600,000. Last week, Exxon Mobil Corp (XOM.N) said overall shale production would be about 150,000 bpd less than planned in 2021; it had expected to produce roughly 360,000 bpd in 2020.
CANADA:
Canada produced roughly 4.8 million bpd in March, according to the nation’s energy department, with about 4.5 million of that coming from Western Canada. The province of Alberta had already been curtailing production due to weak pricing for Canadian crude, but it has not ordered any additional action.
Overall, analysts predict Canadian crude cuts could range from 1.1 million bpd to 1.7 million bpd. Rystad Energy said Canada has already cut output by roughly 325,000 bpd, saying it was the most affected so far.
BRAZIL:
The country’s state-owned operator Petrobras said in April that it will cut production by 200,000 bpd to 2.07 million bpd for April. That compares with 2.39 million bpd in the fourth quarter of 2019.
NORWAY:
Western Europe’s largest oil producer said it is considering whether to cut output. Norway produces roughly 1.75 million bpd, according to the Norwegian Petroleum Directorate, and it has restrained production in the past.
INDONESIA:
Indonesia’s state oil and gas company PT Pertamina PERTM.UL has said it was in talks with suppliers to defer petrol imports in April as Jakarta’s measures to fight the coronavirus hit demand for its fuel.
STORAGE:
Saudi Energy Minister Prince Abdulaziz bin Salman said the International Energy Agency (IEA), the energy watchdog for the world’s most industrialised nations, would announce purchases into stocks by its members of roughly 200 million barrels over the next couple of months.
