Meeting growing oil demand requires utilizing natural resources — report

KUWAIT (KUNA) — The utilization of natural resources and raising the added value of existing oil industries and their competitiveness is a must if sector developments are to be faced and growing demand on oil is to be met, said a specialized oil report.

“The Golden Age of Oil Refineries” report, published in the latest issue of Kuwait National Petroleum Company’s “Al-Wataniya” magazine, said the greatest concern for oil-consuming countries was insufficient refineries which affected supply and thus raised prices.

It said current investments were flowing in for the expansion of existing refineries and building new ones in order to reap profit in the future, but experts did not expect the new refineries would come into operation before 2010-2012.
As for the Organization of Petroleum Exporting Countries (OPEC), the report said it was not in its interest to raise oil prices to levels that were not acceptable to consumers.

However, it is in OPEC’s interest to guarantee ample supply of energy for the world, it said.
The report noted that some countries — OPEC members and non-members — were now planning new refineries. These include Kuwait’s fourth refinery, alongside Saudi Arabia’s boost in production capacity from two million barrels to 3.5 million per day.

Despite the expected profits from investing in new refineries or raising production capacity in existing ones, observers do not expect the “golden age” of refineries to last forever because, historically, it is subject to economic ups and downs, the report noted.

KUNA