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OPEC, the oil producer cartel, is shrugging off talk of its weakening influence sparked by booming US shale energy production, according to analysts.
"OPEC will be around after shale oil finishes," secretary-general Abdullah El-Badri said with a smile Friday as the 12-nation Organisation of Petroleum Exporting Countries (OPEC) met in Vienna.
An explosion in hard-to-reach energy trapped in shale, or sedimentary rock, has sparked doubts about OPEC's standing in the global oil market, analysts say.
However, El-Badri played down talk that the so-called shale oil and gas revolution in the United States could diminish the global influence of a group that pumps about 35% of global oil.
"I don't think it's a big threat," the Libyan told reporters in Vienna, where the cartel held its daily oil output ceiling at 30 million barrels.
"It is a newcomer, it is a new addition to the energy mix and we welcome it."
The International Energy Agency said last month that shale was sparking a "supply shock", creating a brand new energy supply that was reshaping the industry.
But El-Badri also highlighted the relatively high cost of shale energy extraction, and the harsh impact on the environment of controversial methods like hydraulic fracturing, or fracking.
"The ministers would like to know the magnitude of this supply, how long it will last, its possible sustainability, its cost (and) effect on (the) environment," he said after ministers discussed the issue in their closed-door meeting.
"Some say ... It will be a huge supply, some say it is a cheap supply, others ... Report that this is going to be a very high cost.
"We will look at it and follow it up as with any sort of energy," he noted.
OPEC ministers also decided in Vienna to establish a committee to examine the impact of shale.
Meanwhile, analysts were split over the impact this new source might have on the energy market.
Analyst Fawad Razaqzada at trading group GFT Markets predicted OPEC would take a hit from shale.
"It is not a question of if, but how severely the booming US shale oil production would diminish the market power of OPEC, and thus cause exports to shrink," Razaqzada told AFP.
"Along with the United States, production of oil is also booming in Russia and Norway, which makes OPEC's influence on the price of oil increasingly less significant," he added.
