Houston Matters

OPEC Calls for Lower Oil Production — What Would that Mean for Houston?

Reuters last month reported OPEC, the Organization of the Petroleum Exporting Countries, was concerned about dropping oil prices and wanted to open dialogue with member countries about cutting supply. Of course, no one wants to be the country that stops pumping first, especially in cash-strapped nations like Russia and Venezuela. Meanwhile, Saudi Arabia — a […]

Reuters last month reported OPEC, the Organization of the Petroleum Exporting Countries, was concerned about dropping oil prices and wanted to open dialogue with member countries about cutting supply.

Of course, no one wants to be the country that stops pumping first, especially in cash-strapped nations like Russia and Venezuela. Meanwhile, Saudi Arabia — a part of OPEC — has not slowed production. The Financial Times reported as of June that the Saudis had increased production to a record 10.3 million barrels a day, or one in nine barrels bought globally.

So what’s the strategy behind this outcry for lower production from OPEC in the first place? And where does the U.S. — and Houston — fit in? We ask Forbes staff writer Christopher Helman.

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