Arab Oil Producers to Increase Production: OAPEC

Arab oil producers to increase production: OAPEC

KUWAIT CITY, Aug. 6 (Xinhua) — Oil-producing Arab states plan to raise their production from 32.2 percent of the world oil market to between 38 and 40 percent by 2010, the Organization of Arab Petroleum Exporting Countries (OAPEC) said on Saturday.

OAPEC said in a monthly bulletin that in light of global market developments, oil consumers and international companies look to the Arab region and Iran for accommodating the increased oil demand, especially as they are home to 71 percent of the total world oil reserves.

The bulletin said the region’s ability to increase oil production brings peace to the market, Saudi Arabia comes in the forefront of producing countries with a production capacity of 1.5 million barrels per day (bpd) which may be raised between 12.5 and 15 million bpd in the future.

In order to achieve the goal, about 421 billion US dollars will be invested in projects of the Middle Eastern power sector, including 130 billion dollars in Saudi Arabia and 95 billion dollars in the United Arab Emirates (UAE).

Maintaining resources and sources of local and international investments would be obtained through a number of requirements, including stabilized oil prices that accommodate the needs of both producers and consumers and allow for the balanced growth of global economy, it said.

On international demand for oil in the current year, OAPEC said it is currently between 83.9 million and 84.7 million bpd, and is expected to reach 86.7 million bpd in 2006, crude oil would account for 60 percent of the demand.

OAPEC predicted that world oil demand would continue to increase during the next few years, the global economic growth for this year stood at 4.3 percent despite concerns over financial imbalances and the International Monetary Fund’s predictions for inflation.

OAPEC said the US demand would reach 20.8 million bpd this year and 21.1 million bpd in 2006.