Energy education: Reasons for OPEC's failure to meet its oil production targets
In view of the current energy crisis, the demand for hydrocarbons has led to new production quotas being demanded from the Organization of Petroleum Exporting Countries (OPEC); however, it has been repeatedly evidenced that OPEC is once again failing to meet the production target established at its last meetings.
The organization actually managed to meet its production quotas after its last meeting under the framework of the agreement held in November, however some OPEC countries have not managed to maintain a production in accordance with the quota required by the cartel, which is why these countries have been pumping and producing less crude than the monthly increase that corresponds to them.
It is worth mentioning that this agreement committed some countries so that together they could increase their production by 254,000 barrels per day (bpd) each month, it is really an ambitious proposal given that many of these countries lack the necessary infrastructure to maintain and increase such production, however it is a commitment that breaks with the paradigms of the ambitious, since if we estimate that there is a demand to satisfy worldwide, then perhaps an increase in production of 400 thousand barrels per month is something that would even fall short based on the existing demand.
What is the main cause of OPEC's failure to meet agreed production quotas?
Basically, it can be analyzed that the Organization of oil exporting countries has been below its collective production quota, i.e. the oil production that should have been added by the countries that should have increased their production did not increase it, the reason is simple, and it is that many countries have an inability to pump crude oil up to their respective quotas.
This confirms a trend that started a few months ago: not all OPEC members have the capacity to pump their full quotas.
This seems to have an irreversible continuity, since the trend is that some countries continue to have the aforementioned inability to produce, which leads me to think that it is very difficult for OPEC to continue to meet the objective of new quotas in the increase of production, unless these countries can be helped to solve their inability to increase crude oil production.