The US government is neither opposed to nor supports the Opec-non-Opec production restraint agreement that Opec is now seeking extend to 2019 and beyond, deputy US energy secretary Dan Brouillette told MEED at the opening conference of the International Petroleum Week in London on 20 February.

The US was “neither against nor for” the agreement which is supported by 24 nations accounting for about half of world oil production and has helped bolster oil prices for more than a year.

Brouillette had earlier said in a speech at the conference that President Donald Trump’s policies call for the US' “dominance” in world energy markets. This involves becoming a net energy exporter and a leading LNG supplier to global markets, he said.

“We are already a natural gas exporter and are on the cusp of becoming a net energy exporter,” he said. He said that US oil output was now averaging 10 million barrels a day (b/d).

Brouillette said that President Trump’s energy strategy involved displacing imports and encouraging production to meet rising domestic and global demand.

Special attention is being devoted to gas exports.

“10 million cubic feet a-day of LNG exports will be operational by 2020,” he said. “When it comes to exporting to LNG, the US is open for business..we remain ready willing and able to export LNG to anywhere in the world.”

UAE Energy & Industry Minister Suhail al-Mazrouei who is also the current Opec president earlier told the opening conference that Opec is drafting a charter that will establish a long-term partnership among the 24 nations that renewed the Opec-non-Opec production restraint deal in November.

“The (24-nation Opec-non-Opec) group has created enormous trust and we have delivered more than 100 per cent of what we promised,” Al-Mazrouei said. “We are continuing that co-operation to maintain that market balance. The level of understanding and co-operation … gives us hope that we will be able to draft something acceptable to everyone.”

“Charter is in a draft form,” Al-Mazrouei said. “We are hoping we can discuss this with the ministers during this year. But even if it takes more time, there is..potential. If we can achieve this it will strengthen the group. We are a group of responsible producers and we want to deliver market stability for the benefit for the whole world.”

The original agreement reached in December 2016 called for Opec and non-Opec nations to reduce total production by about 1.8 million barrels a-day until June 2017. This was extended to the end of the first quarter of 2018. The deal was then amended last November to encompass the whole of the year.

The 24 countries delivered 107 per cent of the monthly target in 2017. Opec has said this rose to 133 per cent in January 2018.

The agreement has helped lift oil prices which have averaged more than $60 a-barrel so far this year.

The agreement involves most of the world’s leading oil producers and has been named the energy deal of the century for its unprecedented nature.

Opec secretary general Mohammed Barkindo has said he has had talks with US independents about Opec’s strategy, but there is no evidence America’s oil industry is yet collaborating with the Opec-non-Opec group.

“We are open to any producing country to join but you can recognise for the US (there are difficulties),” Al-Suhail said in response to a question about possible US co-operation with the group. “There are so many companies in the US that are producing and it’s difficult to put them under one umbrella as well as legal issues.”

Historically, US government’s have been bitterly critical of Opec which it’s accused of artificially raising prices and acting as an anti-US bloc.

The more measured tone expressed by Brouillette reflects a sharp change of emphasis in US energy policy since the election of President Trump in 2016. This is now focussing on removing restrictions to domestic US energy production. Higher oil prices, though unwelcome to US consumers, has nevertheless contributed to the buoyancy of US energy production by stimulating investment in oil and gas capacity.