OPEC Secy Genl: Members Could Rethink Post-’12 Expansion Plan

OPEC members responsible for 40% of the world’s oil production capacity could rethink their capacity expansion plans beyond 2012, according to the group’s Secretary-general Abdalla Salem el-Badri, unless dialog with consuming countries gives them assurances over future demand.

In an interview with Dow Jones Newswires, el-Badri said there was little enthusiasm among Organization of Petroleum Exporting Countries members to spend billions on idle oil capacity.


Reiterating OPEC’s commitment to supply the world with the oil it needs, el-Badri said its members had already earmarked $130 billion-worth of capacity expansions that would add a net 6.7 million barrels a day to current production levels by 2012.

But a further 9 million barrels a day of capacity in place by 2020, costing anywhere between $250 billion and $500 billion, could be in doubt because “we don’t see the situation after 2012,” el-Badri said.

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