Wednesday, 30 November 2016
By Amanda Augustine and Marcial Nava
In a historic move, OPEC, along with non-OPEC nations like Russia, agreed to cut production after a prolonged period of low oil prices.
However, implementation and monitoring of the deal could be hampered by geopolitical factors. The deal was well received by markets, which saw it as a reassurance of OPEC’s capacity to stabilize the market after the collapse of previous negotiations. Although the OPEC deal is expected to have a positive but moderate impact on prices, it will certainly provide relief to several producing countries, reducing the probability of economic crisis and social unrest.
As the U.S. energy mix is shifting away from coal, there is wide consensus that natural gas is a bridge fuel towards renewables, given its ability to meet climate objectives and energy needs.
With a reputation as a reliable source of energy, wind energy makes significant strides as government incentives, global investments, and technological advances aid growth.