Sunday, January 20, 2008

OPEC and the International Oil Companies

In an exclusive SPIEGEL interview, OPEC Secretary-General Abdalla Salem el-Badri discusses the dangers of a further dramatic rise in the oil price, the failures of multinational oil companies and considerations within the cartel of oil-exporting nations to trade in euros rather than dollars. ... Excerpts:

El-Badri - We are currently able to increase production by 3.5 million barrels. And we have also invested up to 2012 in new projects at a total cost of $150 billion, which will give us additional capacity of 6 million barrels in four years. However, we have to know how high the demand for oil will be in the future, so that we can plan our investments accordingly. …

I have visited China and spoken with the political leadership there. We are in talks with the EU and I am going to visit Japan. The most important thing for us is dialogue. The individual countries do not provide us with exact demand figures for the future, but at least they give us some indication of how much oil will be needed. Complete interview at SPIEGEL INTERNATIONAL

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