The Department of Energy (DOE) is urging everyone to efficiently utilize energy.
This after the agency observed the dwindling production of both members and non-members of Oil Petroleum Exporting Countries (OPEC).
Based on the statement from the energy department, Saudi Arabia, with its large contribution to the world oil supply, has steadily reduced its crude oil production by 336,000 barrels per day (B/D) this March, bringing the total OPEC reduction to around 1.6 million B/D as of March 2019.
Such decrease in exports are expected continue until next month, with the announced reduction of an additional 635,000 B/D.
The energy department also claimed that “actions by the United States, with the imposed sanctions on Venezuela and Iran have also affected world oil prices including the impending Iran export waiver expiring in April, affecting a further reduction of crude oil supply by around 1.1 million B/D.”
“This has already resulted in recent cuts of U.S. oil reserves, causing the overall increase in crude prices,” it noted.
The scheduled maintenance shutdowns of oil processing facilities in the East Asia, particularly in Japan (JXTG Nippon Oil & Energy) and China (Sinopec) will further reduce oil supply.
DOE Secretary Alfonso Cusi said being an oil importing country, the country will be experiencing the effects caused by such actions.
“The nation, along with the majority of the globe, is facing the realities of socio-political turmoil in oil-producing countries, which, sadly, results in fluctuations of oil prices. I cannot stress enough that, as an oil importing country, our market is susceptible to these effects, and it is up to us as a nation how we handle this challenge,” Cusi said.
He renewed calls for efficient utilization of energy, following the movement of prices in the world market.
He also encouraged everyone to exercise their power of choice to enhance more competition in the retail level.
“The retail prices and services per retail station are different. Our consumers must compare the prices and services and choose the retail station that provides the best products and services that suit their needs,” Cusi explained.
“Everyone must be aware of their respective energy consumption habits and continue to observe an energy efficient lifestyle, whether we have fuel price increases or not,” he added.
Further, he said that they will continue to monitor the oil price and fuel quality monitoring activities.