World Oil Supply
OPEC Monthly Oil Market Report – September 2017
Table 5 - 6: US rotary rig count on 8 September 2017
North American oil & gas industry
offer support for NAFTA ahead of renegotiation
The American Petroleum Institute (API), Canadian Association of Petroleum Producers (CAAP) and the
Mexican Association of Hydrocarbon Companies (AMEXHI) released a joint paper in August, highlighting
their policy positions on further strengthening the competitiveness of the North American energy industry
under the North American Free Trade Agreement (NAFTA).
“The natural gas and oil industry across North America is united in our support for NAFTA and the
significant consumer, economic and security benefits it generates,” said API President and CEO Jack
Gerard. “As the energy flows between our countries continue to grow, it’s important to highlight the critical
role NAFTA has played in facilitating cross-border trade and investment in energy.” He added that the
energy trade alliance under NAFTA supports jobs and manufacturing in energy.
The US administration has called for renegotiating NAFTA, which entered into force in 1994, stepping back
from an initial plan to terminate the agreement.
The paper notes the dramatic changes that have taken place in the North American energy industry since
NAFTA entered into force in 1994. This includes the surge in US oil and gas production led by the shale
industry, the opening up of Mexico’s energy sector to foreign and domestic private investment for the first
time in over seventy-five years, and the developments in Canada’s energy infrastructure, oil sands sector,
and liquefied natural gas (LNG) production.
The paper supports a number of specific policy positions, particularly preserving NAFTA’s elimination of
tariffs in the trade of crude oil, natural gas, and refined products, as well as other goods supporting energy
Other policy aims include preserving regulatory cooperation and allowing for fully liberalized trade across
North America. It also highlights the support for preserving provisions for investment protections and dispute
settlement, including rules that restrict expropriation of investments and provide for timely and adequate
compensation when expropriation occurs.
On 5 September, trade representatives from the three countries completed the second round of NAFTA
renegotiations, following five days of meetings in Mexico City, Mexico. According to an official joint
statement, “the renegotiating process is expected to complete “towards the end of this year”.
8 Sep 17 Month ago Year ago M-o-m Y-o-y Y-o-y, %
Oil and gas split
Drilling trajectory Directional
US total rig count
Sources: Baker Hughes and OPEC Secretariat.