In June 2012, when Lance spoke at the last biennial seminar held by the Organization of Petroleum Exporting Countries, the U.S. was pumping 6.2 million barrels a day. Now, it produces 9.5 million barrels at day, the highest since 1972.
The Organization of Petroleum Exporting Countries has been pumping above its production quota for months, determined to subdue supply from higher-cost producers. The strategy is working, with a record drop in the number of active U.S. rigs and billions cut from global producers’ spending plans. In contrast, some of OPEC’s members spent this week outlining how they plan to expand output.
The factory would produce at least 1 billion pounds (450,000 metric tons) of resin a year and would be the U.S. polypropylene industry’s first world-scale project in about 12 years, said Mark Nikolich, a vice president at Braskem.
Oil slumped last year as the Organization of Petroleum Exporting Countries maintained its production limit at 30 million barrels a day, insisting that suppliers outside the 12-nation group must help tackle a global surplus.
The Organization of Petroleum Exporting Countries’ summit on June 5 to determine the group’s output will come three weeks before a deadline for a deal on Iran’s nuclear program. Iran says it can add almost 1 million barrels to daily production within months of sanctions being lifted.
Exxon Mobil Corp., Chevron Corp., Royal Dutch Shell Plc, Total SA and BP Plc CEOs spoke in favor of using natural gas that would supplant dirtier coal-fired power. Demand for the energy is seen outpacing oil over the coming decades.
European oil companies including Royal Dutch Shell Plc, BP Plc and Total SA are promoting gas as a way to limit the growth of emissions blamed for climate change. They have also called for a price on carbon dioxide.
With almost 200 nations set to hammer out a binding pact on carbon emissions in December, fossil-fuel companies led by Royal Dutch Shell Plc and Total SA say they’re refocusing on gas as a cleaner alternative to the cheap coal that now dominates electricity generation worldwide.
The Houston-based company has led a wave of new U.S. facilities that make ethylene, used in plastics to polyester. Plants that use low cost gas from shale formations will help U.S. production of basic chemicals increase for the next four years, starting with a 3.1 percent rise this year and peaking at 6 percent in 2018.
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