OPEC countries to invest $ 120 bn

More than 120 upstream projects worth $ 120 bn (Dh 440 bn) will be taken up in OPEC countries in the next five years, according to the organisation.
Members of the Organisation of Oil Producing and Exporting Countries (OPEC) will not leave their plans for upstream capacity expansion in the wake of sober oil demand projections. Data available from OPEC World Oil Outlook for 2009 states that 120 projects worth $ 120 bn will be taken up in OPEC countries in the next five years.

Dubai-based analysts said even though major oil companies in the region may continue with their expansion projects they may not actually extract oil from wells now.
"The companies may decide to wait for the next three to five months before the demand for oil picks up to a commendable extent. There may be projects where even though every other activity related to the project may be carried out the actual oil drilling may not begin," said Dheeraj Shahdadpuri a DIFC-based oil analyst.

OPEC said the oil and gas projects are in addition to infrastructure projects currently on in the region.
"These projects are in addition to all energy infrastructure projects, such as pipelines export terminals and downstream expansion schemes," OPEC said. Most of these projects spreading from countries like Angola and Algeria to Saudi Arabia are expected to be financed by the respective governments.

As for global oil demand, which is supposed to drive these projects, the picture has improved, though to a small extent, in recent days. The International Energy Agency (IEA) in its recent report said the US will grow at 0.7 % in 2010.
The France-based organisation revised its 2010 global consumption forecast up 130,000 bpd to 86.3 mm bpd. That means an annual increase in consumption of 1.7 % by 1.5 mm bpd compared to 2009. By 2014, the IEA expects global oil demand to have increased to almost 91 mm bpd, averaging growth of 1.2 % annually over the next five years.