Shell said that since Saudi Arabia has recreated its spare production capacity by bringing new facilities on stream, it will retain OPEC leadership and consolidate its international influence.
"This leadership will be tested if the present OPEC spare capacity buffer lasts well into this decade. It will depend on the pace of uptake of Iraqi oil production and the competitive response of other OPEC members in maintaining market share," Shell said.
It also said that apart from Iraqi production, the breakthrough in natural gas supply in North America was one of the most important changes for the balances of energy markets in recent years.
"Total potential resources are now thought large enough to meet current consumption levels for about a century. This boom reaches far beyond North American shores. Many other countries are now inspired to search for new gas resources themselves"
(Source: Reuters)
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