Posted on 01/18/2007 6:27:15 PM PST by jdm
Saudi Arabia plans to increase its crude oil production capacity nearly 40 per cent by 2009 and double its refining size over the next five years to keep pace with growing global demand, the country’s oil minister said on Thursday.
Ali Naimi said the plans are part of a $80-billion-commitment that Saudi Arabia — the world’s biggest oil exporter — has made to increase oil supplies in the global market.
Naimi blamed the sharp rise in global crude prices over the past two years mostly on “insufficient investment and rising energy demand,” especially from the booming economies of Asia.
“The rise has been a wake-up call for the industry and for producers and consumers alike, who are now beginning to address deliverability problem head on,” he told delegates to an international energy conference in New Delhi.
Saudi Arabia, which has a quarter of the world’s proven oil reserves, has a significant stake in ensuring stable markets, Naimi said.
It plans to expand crude production capacity to 12.5 million barrels a day by 2009 from 9 million barrels now. And if market conditions demand, the country has identified additional projects to further boost capacity after 2009, he said.
Saudi Arabia is also making substantial investments in refineries within and outside the country so to double its refining capacity to 6 million barrels a day over the next five years, he said.
Naimi said an assessment by his government has revealed that “oil will remain the fuel of choice for the transportation sector and as such, will make up significant portion of new energy demand in the coming decades.” He believes oil resources are sufficient enough so that they can meet future energy demands for the next 30 years.
Naimi said the overall energy mix in 2030 will look much the same as it does today, despite the increase in availability of alternative energy sources, because these are still not economically competitive with fossil fuel. His comments come at a time when crude oil prices have dropped considerably after hitting a record high of $78.40 a barrel last July.
After his arrival in New Delhi on Tuesday, Naimi said he felt the global oil market was moving in the right direction — remarks that prompted crude prices fall to a 20-month low of $50.28 a barrel Wednesday.
Prices rose later to close at $52.24 in New York and then climbed further in early Asian electronic trading Thursday to $52.41 a barrel. “Prices needed to be high enough to give adequate returns to producers without hurting consumers,” Naimi said.
Holy smoly. The price oughta drop real quick with that news. Bush must be twisting some Saudi arms.
I am glad that Dick Cheney cleared this one up with the Saudis.
I have little doubt that we explained that they will drop the price of oil until the economies of Iran and Venezuela are broken.
This is as sweet as their crude.
Let the good times roll.
See, the price for saving your sunni friends in Bagdad was not all that expensive now was it?
I predict that within the next 5 years Iraq and Saudi Arabia will combine to destroy Iran. . . .
by drowning them in oil.
The Saudis have said that they would prevent Iran from waging war by denying them the funding.
When you combine this with Iran's presently weak economic situation, it is clear that the cards have all been played and Iran has lost. They are about to experience a sharp economic decline. This will not increase clerical popularity.
I suspect there are a few fools in Tehran who can read this handwriting on the wall.
The article says -- "Saudi Arabia to ramp up oil production [40 percent increase within 2-3 years]"
Ahhh..., good -- keep that money flowing to those Wahhabis. Osama's gonna need some more money for those nukes...,
Regards,
Star Traveler
chavez is a cooked goose...I bet he is pissed off...LOL..this'll sink chavez's VZ.......
they want to destroy any projects in the west to develop alternative fuels or high efficiency transportation.
Total Imports of Petroleum (Top 15 Countries)
(Thousand Barrels per Day)
Country Nov-06
The Saudis are pulling the same trick they used in the 80s. This is a determined effort to cashier any alternative fuel schemes.
Not so fast, Abdul. With any luck, the demand -- at least within the US -- will start tapering off as alternative fuels become available. The day of bedouins choking on their oil is approaching. Not quickly, but these kinds of stories lead me to believe that the camel jockeys know their days are numbered.
Fine by me. If the prices drop back so I'm paying a 1.35 again for gas, then the US can save its oil reserves for the future.
Saudis have their panties in a bunch with Iran now sending money to Hamas, Hezbollah shiites trying to seize power in Lebannon, and all the rantings coming out of Iran recently about establishing a shiite dominated caliphate spaning the whole middle east.
that too.
If the saudis can ramp up oil production -- they can kill the price of oil and thereby collapse the demand for alternate forms of energy.
they did the same thing back in the early 80's.
I think the price of oil will go down but I don't think the demand for alternate forms of energy will dissipate.
There are now two drivers for alternate forms of energy. From the left comes the worries about the environment. from the right comes worries about security. These are now fixtures.
True, but the ever increasing demand for oil in East and South Asia will probably mute their ability to do that. I also suspect that the Saudis have to massively increase production to make up for the upcoming reductions in Iranian and Venezuelan production. Chavez and the Ayatollahs have really mucked up their golden gooses.
What else can they do. They gotta keep us hooked on their oil so that we will keep our military close by to prop up the corrupt Saud monarchy.
Gas is still high here in MW Florida...$2.23 a gallon.
That's my opinion too.
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