Saudis to increase oil output capacity

NEW DELHI – Saudi Arabia plans to increase its crude oil production capacity nearly 40 percent by 2009 and double its refining size over the next five years to keep pace with growing global demand, the country’s oil minister said Thursday.

Ali Naimi said the plans are part of a $80-billion-commitment that Saudi Arabia

Naimi blamed the sharp rise in global crude prices over the past two years mostly on “insufficient investment and rising energy demand,” especially from the booming economies of Asia.

“The rise has been a wake-up call for the industry and for producers and consumers alike, who are now beginning to address deliverability problem head on,” he told delegates to an international energy conference in New Delhi.

AP