OPEC: Needs to Invest $30B/Yr Medium Term; To Up Spare Capacity by 4 MMbpd

LONDON (Dow Jones Newswires), Nov. 8, 2011

The Organization of Petroleum Exporting Countries will need to invest $30 billion a year to increase production capacity and expects to boost its available spare output by about 4 million barrels a day, the group said Tuesday in its annual World Energy Outlook.

In the report, the group said it needs "to invest an average of $30 billion annually over the medium term, rising towards $40 billion per annum in the long term" to fullfil market needs for additional capacity.

As a result, OPEC said its crude oil "spare" capacity is set to stabilize at around 8 million barrels a day over the medium term, rising from about 4 million barrels a day this year.

Skepticism had emerged over OPEC's investment plans after group kingpin Saudi Arabia last month downplayed previous plans to raise its oil output capacity to 15 million barrels a day, from about 12 million barrels a day.

But overall, if one includes all liquids and maintaining existing capacity, OPEC said exploration and production plans by its members for the period 2011-2015 "could translate into an investment figure of close to $300 billion should all projects be realised."

Through that is much higher than the $155 billion worth of projects it forecast over five years in its previous report in 2010, it pointed out that the spending forecasts were subject to high demand and price uncertainties.

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