OPEC countries plan to add a total of 21mn bpd of new oil capacity over the next five years, according to the organizations secretary-general Abdalla el-Badri.
"Now we have investment of US$312 billion for five years to add more to the supply, about 21 million bpd gross," Badri was reported as saying in Dubai.
Iraqi investment
This five-year projection of capital spending by OPEC members includes its expectations for Iraqi investment in oil development. Iraq is currently embarking on a aggressive program to boost production capacity.
Badri said OPEC might need to discuss the eventual return of Iraq to the group's quota system by the end of 2012. That timeline, however, was only an "estimate," he stressed.
Demand falling ?
Badri believes that oil demand was falling, but that the deterioration was gradual. "We think demand is coming down, but not that much. We have to wait and see what will happen in the next two or three months in the world economy and also for world [oil] demand," he said.
Libya's return
Badri said OPEC may discuss the issue of Libyan oil output at its next scheduled meeting in December if the country is producing "meaningful" volumes by that time. He said OPEC countries would accommodate Libya's return to the international oil market by cutting their own output.
OPEC member Libya saw its oil output fall from around 1.6mn bpd to almost zero this year following the uprising against the regime of Muammar Gaddafi.
Badri added that the average cost worldwide for producing crude had risen by about 230 per cent since 2009.
