Barely a few days after OPEC+ announced historic supply cuts, one thing was clear—it wasn’t enough to offset destruction to oil demand. Though, the question remains whether members of the alliance will follow through on the promised cuts.

“I don’t think we should necessarily believe that the announced cuts over the next two years will be delivered,” said Bill Farren-Price, director of RS Energy Group, speaking at a webinar jointly hosted by Enverus and RS Energy Group. “Historically, when prices rise, OPEC+ compliance weakens.”

Out of the 9.7 MMbbl/d that OPEC+ agreed to cut starting May 1, Farren-Price expects compliance to be between 6-7 MMbbl/d.

Already have an account? Log In

Thanks for reading Hart Energy.

Subscribe now to get unmatched coverage of the oil and gas industry’s entire landscape.

Get Access