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1/25/2018 7:38:29 AM
Posted: 8/14/2002 3:43:53 AM EST
[url]http://www.freerepublic.com/focus/news/732918/posts[/url] Arab states will have to pump at least $113 billion into projects to expand their oil, gas and petrochemical industries in the coming five years, according to official estimates. Around $49.6 billion will be invested in capacity maintenance and expansion projects in the crude oil sector while gas projects will receive nearly $36 billion and the rest will be channelled into refining and petrochemical ventures. But the massive investments between 2001 and 2006 still fall short of the oil and gas potential in the Arab world and the actual needs of the local and foreign markets, said a study by the Kuwait-based Organisation of Arab Petroleum Exporting Council (Oapec). In the absence of sufficient investments, international markets could be jolted again by a fresh supply crisis since the Middle East controls more than 60 per cent of the world's oil. "Altogether, Arab countries are planning to invest at least $113 billion in oil, gas and petrochemical projects during the 2001-2006 period, which will provide good opportunities for cooperation with foreign partners," added the paper. "That level of investment nevertheless remains insufficient in relation not only to their huge hydrocarbon resources but also to the expectations and needs of consuming countries. "This situation is the consequence of a number of factors, such as the erratic movements in prices, political tensions in the Middle East and the sanctions imposed on Iraq, Iran and Libya. Moreover, there is no sign that the situation is going to change in the near future." The 10-nation Oapec warned that more investments are needed in the upstream oil and gas sector in the Middle East and North Africa in order to avoid "sooner or later an explosion in oil prices and a fresh world energy crisis." It said expansion projects would boost the combined Arab crude production capacity by around three million barrels per day to 29.5 million bpd in 2006.
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