Posted on 05/25/2004 10:45:13 PM PDT by JohnHuang2
With oil prices above $41 a barrel, a United Arab Emirates oil minister says an investment of $750 billion is needed in the Middle East to increase output in response to world demand.
"Producers in the Middle East need an estimated investment of $750 billion ($500 billion for oil and $250 billion for gas by 2030) to boost their output capacity to meet growing world demand for oil and gas," UAE Minister of Petroleum and Mineral Resources Obeid bin Saif Al Nasiri told the International Energy Forum.
But, he cautioned, before such an investment is made, the region must first see political and security stability.
Nasiri called for a fair price mechanism for energy products as producers inject more funds in their energy sector.
"Producers welcome local and foreign investment that enable them to produce more oil and gas in order to meet world demand and finance sound infrastructure for gas trade," he added.
On gas pricing, Nasiri stated. "Over the past four years OPEC set a price band between $22-28 for a barrel. Average price during these years was $27, which is an acceptable and reasonable price. A fair pricing can help producers pump required investment into their oil and gas industry, therefore providing world oil market with enough supplies and help fuel world economic growth."
As a result, Organization of Petroleum Exporting Countries ministers say oil prices above $30 a barrel may be here to stay, just four years after agreeing that $25 a barrel was acceptable for both producers and consumers. Crude closed at a record $41.72 a barrel yesterday in New York.
Members including Iran, Nigeria and Venezuela say they want prices at the top end of, or above, the official OPEC target of $22 to $28.
"We need to find a new band as a reference that will guide investors," Edmund Daukoru, the adviser on oil to the president of Nigeria, OPEC's fourth-largest producer, said in Amsterdam, where energy officials from more than 50 countries met for three days. "It's unrealistic to think of $22 as the floor."
OPEC ministers have argued that rising prices stem from conflict in the Middle East and concern about potential petrol shortages, rather than from a lack of crude oil.
The more than 50 countries attending the ninth International Energy Forum that closed yesterday agreed oil prices needed to come down, without saying to what level.
Energy Secretary Spencer Abraham also said prices were too high and urged oil producers to increase output.
Saudi Arabia is boosting production after the U.S. and other industrial nations warned that near-record prices threatened to slow economic growth. OPEC will decide in less than two weeks whether to ratify a Saudi plan to increase official production targets.
-Sticker Shock-$3 a gallon gas? Some links--
My Vest Pocket solution?
1- drill for gas & oil like crazy- onshore, offshore, and in Alaska
2- go nuclear for power
3- convert stationary plants to clean coal technology
4- slash taxes and regulations like crazy
Let us kick their ass
And take their gas
Thanks for the link, my friend.
Thanks, same here, friend.
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