Finally?additional capacity is underway

With massive revenues, budget surpluses, and pressure from consuming countries, oil-producing countries have embarked on massive capacity expansion. OPEC announced in its April monthly report that its members will increase their collective capacity by 4 million bopd by 2010. The market will see some of these expansion results this year. OPEC’s report stated, “During the year 2005, average OPEC production capacity is expected to rise to 32.7 million bopd, as additional projects are brought onstream, including a raft of projects that began at the end of 2004.” Most of the increase will come from Saudi Arabia, the UAE, Iran and Kuwait.

WorldOil