Expert’s Opinion: Oil Heads for Technological Optimization

3 august 2015

Leonid Grigoryev, Chief Adviser of the Head of the Analytical Center, attended the roundtable discussion “Oil Prices: Are They in a Long-Term Downward Trend?” The discussion was held at the Press Center of Russia Today (International News Agency). The day before the discussion the expert attended the meeting chaired by the Russian Minister of Energy Alexander Novak and by OPEC Secretary General Abdalla el-Badri, in the course of the Fourth Meeting of Russia-OPEC Energy Dialog.

Mr. Grigoryev said that the discussion had been too quiet. “Despite this is a public event, the market analysis suggests that it is rather common,” he said. “A critical analysis was performed at the end of March in Riyadh, which traditionally brings together 100 people to discuss the oil market specifics,” he added. However, he subscribes to the opinion that it is vital to note that a wide variety of issues that relate to oil, technology, current market problems and long-term trends were all discussed at the meeting.

Mr. Grigoryev believes that the experts have always understood that the recent prices of $100-120 are unreasonably high. “The price exceeded $100 after Fukushima and Libya, with extra 20 dollars bonus due to political and other disasters,” he was quoted as saying. Today, the most expensive resource (oil) heads for technological optimization. When it comes to the agenda of the Russia-OPEC meeting, Mr. Grigoryev believes that the Russian delegation’s speech that dealt with reviewing the technologies from the standpoint of both consumption and production was of great interest.

The discussion held on Thursday caused no dramatic decisions to be taken, in spite of the fact that the markets did respond to its existence. “That was too quiet a discussion,” Mr. Grigoryev said. “OPEC is not about to introduce quotas or reduce oil production. We have an oversupply but the global situation is not similar to that we witnessed in 2008. “All of us decided to give way to the natural course of events, and we should take it easy,” he added.

A video of the roundtable discussion is available on the website of the Press Center of Russia Today (International News Agency).

Photos by courtesy of Russia Today (International News Agency).