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AGCC for reducing negative impacts of oil fluctuations

Adipec 2004 was inaugurated earlier yesterday by General Staff Pilot Shaikh Mohammed bin Zayed Al Nahyan, Deputy Crown Prince of Abu Dhabi, Chief of Staff of the UAE Armed Forces, and Chairman of the General Exhibitions Corporation (GEC).

Shaikh Fahad Al Ahmad Al Subah, the Kuwaiti Oil minister who was present at the inauguration said the oil fluctuation is developing into a very dangerous one. The current rise in oil prices are not linked to supply and demand forces but to the current security and political situation in the area and the international situation in Russia and Nigeria. Al Subah added that Opec was seeking to ease the impact of steep rise in oil prices. Kuwait is committed to Opec policies and is producing 2.5 mbpd and we are willing top produce 200,000 barrels more per day.

There are no shortages in oil supplies", he said and added that the increase in oil prices was due to the fears of future shortage that may occur due to the deteriorating security situation. Al Subah considered the call from some quarters to maintain the Opec capacity without hiking it as non-practical as it was a short-term solution and wouldínt benefit the international economy in the long-term. He added that it was very hard to speculate on the market situation or the price levels because of the incidents in the Middle East. As regards the current solutions, he said that Kuwait will be producing an additional 200,000 barrels per day.

In addition, he also said that the increase in output promised by Saudi Arabia to meet the expected demand in the final quarter of this year due the increased consumption of fuel for heating in the winter months, would definitely help the calm down the situation.

He added that Opec ministers were leaving for Jeddah to discuss rising prices of oil as well as the impact on the international market. He also said that discussions would involve the possibilities of changing the range of these (high) prices to between $32 to $35 per barrel.

On his part Ali Al Nuaimi, the Saudi Arabian oil minister said, “The Opec countries are doing their best to meet the increasing international demand. Saudi Arabia is prepared to increase its production capacity by a million barrels per day if needed. Saudi Arabia has the production capacity of 11 mbpd and while it’s actual production is 9.5 million barrel per day with a spare capacity of 1.5 million barrel per day capacity.” Ali Al Nuaimi also said that there are current development plans underway for oil fields and increased production capacities and that Saudi Arabia will dedicate some of its production as ready reserves to be pumped in the international market if needed.

He said that Dolphin Gas project between the UAE and Qatar is going on as planned emphasising his expectations that there would be an opportunity to establish mutual oil and gas projects in the future.

Obeid bin Saif Al Nasiri, the UAE Oil Minister said Adipec is considered to one of the biggest specialised events for the oil and gas industries and provides a great opportunity to international experts and decision-makers to meet less than one proof. He added that the event was a great opportunity for business deals between exhibitors from all over the world who were showcasing their products and services.

He anticipated that the UAE would sign major deals in this exhibition. Dr. Rashid Saleh Barbah, the Yemeni Oil Minister and Amanullah Khan Jadoon, the Pakistani oil minister who were present on the occasion commended the great competence with which Adipec had been organised.