Organization of the Petroleum Exporting Countries may admit there is the limit of its never-ending capability
Organization of the Petroleum Exporting Countries may admit there is the limit of its never-ending capability to pump and pump when restless traders and crude consumers need another extra oil production activity.
The majority of OPEC members are pushing to the limits of their oil production efficiency, and some say they are suspecting that their capacity is not as high as hoped, according to a conclusion of Great Britain?s Centre for Global Energy Studies (CGES) in its Global Oil Report Market Watch for September-October.
"Indonesia and Venezuela cannot meet their quotas, while Nigeria?which produced at surge capacity earlier this year?finds it must now lock in production at many of its aging fields, proving that its stated capacity is not sustainable," CGES said.
As worries on the lack of oil reserves occurred all over the world, OPEC members often assured the globe that they were able to pump as much as it was needed. However, now OPEC countries? real capacity has been tested by CGES, which expects that there will be little more than 1.5 million b/d of incremental oil production capacity by the end of 2005.
OPEC's production currently is estimated at just over 30 million b/d of oil, and its current level of spare production capacity is believed to be about 1.4 million b/d of oil at most, representing only 5% of its aggregate output, or 1.7% of estimated world oil demand for the fourth quarter, CGES said.
