Colver Technologies says Ecuador is buckling under the pressure of low oil prices as OPEC led by Saudi Arabia maintains supply glut.
According to Colver Technologies, South American oil producer, Ecuador, is feeling the strain as OPEC (Organization Of Petroleum Exporting Countries), de facto led by Saudi Arabia, insists on maintaining high production levels in a bid to keep global oil prices low and force high-cost frackers in the United States out of business.
The country’s President, Rafael Correa, recently said Ecuador receives as little as $30 for a barrel of its oil while the actual cost of producing it averages around $39. According to Guy Stuyvesant, Chief Operating Officer at Colver Technologies, it is a situation that is mirrored in several OPEC member countries.
“Algeria, Libya, Nigeria and Venezuela are just 4 of the countries within OPEC that are suffering as a result of the current policy. Saudi Arabia and Kuwait have colossal foreign currency reserves so they can cope relatively comfortably even with oil prices at $40 a barrel. Ecuador, on the other hand, needs prices much higher if it is to cover government budgets,” said Stuyvesant.
OPEC’s next meeting, its last of 2015, will be held in Vienna, Austria on December 4 but Colver Technologies warned that poorer members of the group should not expect any moderation or change in policy from Riyadh.
“It seems clear that Saudi Arabia appears to be willing to suffer the short term pain from low oil prices in the present in order to secure market share and long term sustainability for oil prices in the future. They see themselves as fighting for all OPEC members, not just for Saudi Arabia,” said Stuyvesant.
About Colver Technologies
Colver Technologies’ modular GTL systems revolve around the Fischer-Tropsch reactor, a conversion technology developed in the 1920s by Franz Fischer and Hans Tropsche in Germany in 1925. It facilitates the production of significantly cleaner-burning liquid fuels like diesel and jet fuel from natural gas that contains no sulfur. We are committed to doing our part to drive uptake of GTL fuels as global efforts to reduce emissions increase and have invested heavily to ensure the continuing development of this highly attractive alternative to conventional energy production.
Contact Colver Technologies:
Longzhimeng Asia-Pacific Center TurkmenGaz
22 Pangjiang Street
Dadong, Shenyang, Liaoning