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Igor Sechin: US shale ​energy boom could become dotcom bubble

Staff writer |
The head of top Russian oil producer Rosneft said the US shale ​energy boom could become the next "dotcom bubble".

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Igor Sechin also accused Opec ​of destabilising the market by allowing the oil price to halve in six months. ​​He predicted that​ the rapid growth of fracking in the US would start to peter out after 2020.

"We know that revolutions are short-lived and the US production increase is not well supported by reserves," ​Sechin told an industry conference in London.

Oil companies have responded to the price collapse ​by cutting investment​ Sechin ​warned that lower oil production could start to cause supply shortages by the end of the year.

The ​price ​fall deepened after November when ​Opec, a ​group of oil-exporting countries which Russia is not a member of, chose not to cut its ​output.

"O​pec has lost its teeth," ​the Rosneft boss said. The ​12-nation group's decision to let prices fall had led to a ​destabilisation​ of the market, he said.

​"The share of O​pec is pretty stable at around 39​%," Sechin said. "This organisation lost the unity of its members and in some cases is not respecting of some of its members."

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