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Saudis plan major increase in oil output by 2009
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SPECIAL TO WORLD TRIBUNE.COM
Friday, January 26, 2007
ABU DHABI — Saudi Arabia intends to increase crude oil production
capacity by nearly 40 percent in 2009.
Saudi Oil Minister Ali Al Naimi said the capacity would be increased by
improving the kingdom's refinery capabilities in an effort meant to last
through 2012. Al Naimi said Riyad plans to spend $80 billion to expand crude
production capacity from the current nine million barrels to 12.5 million
barrels per day.
In an address to an energy conference in New Dehli on Jan. 18, Al Naimi
said the sharp rise in crude oil prices stemmed from "insufficient
investment and rising energy demand." The minister cited consumption by
China, India and other Asian states.
"The rise has been a wake-up call for the industry and for producers and
consumers alike, who are now beginning to address deliverability problems
head on," Al Naimi said.
Copyright © 2007 East West
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