It has been been almost two years since the historic agreement between OPEC and non-OPEC producers in November 2016 to cut 1.8 million barrels per day (Mb/d) of production. The duration of such a joint agreement has caused lots of speculation about the creation of something more formal or institutional between the two groups. Dr Carole Nakhle, CEO of Crystol Energy, gives her views in this Forbes article written by Gaurav Sharma.
According to Dr Nakhle, the initial exercise of bringing together OPEC and non-OPEC producers was in itself a massive endeavor; what brought these parties together was the challenge from U.S. shale, which was so big that OPEC or Russia on its own could not handle it. It could be viewed as an association of convenience. It is finite, will serve a purpose but not outlive that purpose. Dr Nakhle also adds that formalizing it would present a lot of hurdles.