Non OPEC Producers - Information And Market Analysis

Non OPEC Producers

Non-OPEC producers (countries not members of OPEC - the Organization of Petroleum Exporting Countries) produced 62% of the world's oil (total liquids) in 2003. Since 1970, non-OPEC production as a share of world total oil production reached a high of 71% in 1985 and a low of 48% in 1973, with a 60% average.

One of the major influences on the supply of Crude Oil is the Organization of Petroleum Exporting Countries, or OPEC.

Non-OPEC countries share the following characteristics:
Most non-OPEC countries are net oil importers. Of the 204 non-OPEC countries and territories for which EIA maintains data, 172 (84%) were net oil importers in 2003. Even large producers can also be large (net) importers.

Because most major non-OPEC countries have private oil sectors (with the exception of Mexico), their governments generally have very little control over production levels. Companies react to international price expectations, exploring and drilling more and in higher cost areas when prices are high, and focusing on lower-cost production when prices are low. Non-OPEC production costs tend to be higher than OPEC lifting costs, which makes non-OPEC producers more vulnerable to price collapses. Prolonged periods of low prices can drive higher cost producers out of business, and make major oil companies focus less on higher cost areas.

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