Energy Current Affairs - 2019

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OPEC cuts production to 500,000 barrels per day

On December 6, 2019, the Organization of Petroleum Exporting Countries reached a deal deepening their output cuts. They have set the target as 500,000 barrels a day. The action is being implemented in order to eliminate surplus and bolster crude prices

Current Scenario

In 2019, the organization had agreed to reduce production by about 1.2 million barrels per day. Saudi Arabia in 2019 pumped well below its quota of 10.3 million barrels per day. Other members of the organization Azerbaijan, Mexico and Angola were unable to sustain their production quota due to natural declines. Russia had achieved its target in 3 months. Nigeria and Iraq increased their output.

The above data was published by the International Energy Agency.

Saudi Arabia

Saudi Arabia plays the major role in the OPEC decisions. OPEC oil production dipped to an eight-year low after attacks on Saudi oil plants. Following the attacks, Iraq emerged as the major producer of the organization.

India-OPEC

India imports 80% of its petroleum needs from OPEC countries. However, India has been reducing its dependence on the OPEC countries. In October 2019, India imported 4.56 million barrels per day from OPEC. This is 3.3% low as compared to the previous year.

OECD: Economic Outlook for South East Asia

The Organization for Economic Co-operation and Development released its report in Economic Outlook for South East Asia. The report was presented at the ASEAN summit, 2019. This year the title of the report is “Reponding to Environmental Hazards in Cities”

Highlights

  • India’s GDP will grow at the rate of 6.6% in the years 2020-2024. This is below than its average growth of 7.4% in the years 2013-17
  • Sustaining the efforts taken in the health and banking sectors will be a challenge for India. India will also face difficulties in bridging the disparity between urban and rural infrastructure
  • According to the report, China will have to bridge the gap between supply and demand of its digital talent when it steps to improve digital literacy and increase access to digital services
  • Among ASEAN countries, Vietnam and Philippines will remain as growth leaders.
  • The report predicts that the emerging trade tensions between USA and China will affect emerging Asian market
  • In 2016 coal and oil produced 39% of South East’s energy sector. This is to increase to 44% in 2040. OECD recommends implementation of ASEAN Clean Coal Technology for power plants to reduce pollution caused by these factors.