diff --git a/awx/main/tasks.py b/awx/main/tasks.py
index b8449d33f7..71ef56d6b1 100644
--- a/awx/main/tasks.py
+++ b/awx/main/tasks.py
@@ -1153,7 +1153,7 @@ class RunInventoryUpdate(BaseTask):
             env['GCE_PROJECT'] = passwords.get('source_project', '')
             env['GCE_PEM_FILE_PATH'] = cloud_credential
         elif inventory_update.source == 'openstack':
-            env['OPENSTACK_CONFIG_FILE'] = cloud_credential
+            env['OS_CLIENT_CONFIG_FILE'] = cloud_credential
         elif inventory_update.source == 'file':
             # FIXME: Parse source_env to dict, update env.
             pass
diff --git a/awx/plugins/inventory/openstack.py b/awx/plugins/inventory/openstack.py
index ae5fa78dce..103be1bee0 100755
--- a/awx/plugins/inventory/openstack.py
+++ b/awx/plugins/inventory/openstack.py
@@ -52,8 +52,6 @@ class OpenStackInventory(object):
 
     def __init__(self, private=False, refresh=False):
         config_files = os_client_config.config.CONFIG_FILES
-        if os.environ.get('OPENSTACK_CONFIG_FILE', None):
-            config_files.insert(0, os.environ['OPENSTACK_CONFIG_FILE'])
         config_files.append('/etc/ansible/openstack.yml')
         self.openstack_config = os_client_config.config.OpenStackConfig(
             config_files)
@@ -156,7 +154,8 @@ def main():
         elif args.host:
             inventory.get_host(args.host)
     except shade.OpenStackCloudException as e:
-        sys.exit(e.message)
+        sys.stderr.write('%s\n' % e.message)
+        sys.exit(1)
     sys.exit(0)
 
 
diff --git a/requirements/requirements.txt b/requirements/requirements.txt
index 02dd347786..3764e1fd6d 100644
--- a/requirements/requirements.txt
+++ b/requirements/requirements.txt
@@ -55,7 +55,7 @@ msgpack-python==0.4.6
 netaddr==0.7.14
 netifaces==0.10.4
 ordereddict==1.1
-os-client-config==0.6.0
+os-client-config==1.6.1
 os-diskconfig-python-novaclient-ext==0.1.2
 oslo.config==1.9.3
 oslo.i18n==1.5.0