Spare output to double by 2010: BP

Global spare oil production capacity may double by 2010, helping reduce the “fear premium’’ that is helping boost crude oil prices, according to BP Plc, Europe’s largest oil company.
Spare oil production capacity may rebound to the historical average of about 3mn barrels a day by the end of the decade, from about 1.5mn at present, Mark Finley, head of energy analysts at London-based BP, said yesterday in Sydney.
The level of unused capacity was cut by the “exceptional’’ growth in world oil demand in 2004, which was double the 10-year average, he said.
Some officials in consuming nations, including US Energy Secretary Samuel Bodm
an, have said a lack of spare capacity is to blame for record high prices.
Gulf Times