Search for oil stepped up as price rises
FT.com / Home UK - Search for oil stepped up as price rises
By Carola Hoyos and Javier Blas in London
Published: September 12 2005 21:53 | Last updated: September 12 2005 21:53
The world's biggest oil producers have significantly boosted investment in oil exploration for the first time in nearly two decades.
The Organisation of the Petroleum Exporting Countries, the cartel controlling 75 per cent of the world's oil reserves, on Monday revealed its most important members had drilled 7.5 per cent more wells last year than in 2003 in response to the oil price boom. Opec's annual statistical bulletin also showed that the number of rigs in operation within the 11-member cartel rose 18.8 per cent last year after dropping by almost 6 per cent a year earlier.
There were 248 rigs operating in the Middle East in August, the most since November 1988 and 100 more than the average during the 1990s, according to oil services company Baker Hughes. Opec's news came as consuming countries sought to deflect the blame for high oil prices from their own lack of investment in refining capacity and slow progress in curbing demand for large, fuel-inefficient cars. Meeting in Manchester, Europe's finance ministers called on Opec to increase output. Gordon Brown, UK chancellor, said he had personally urged Saudi Arabia to supply more oil.
Dominique de Villepin, the French prime minister, is expected on Tuesday to announce measures to help commuters and workers cope with high fuel prices. French road hauliers lifted their blockades of wholesale petrol depots after Dominique Perben, transport minister, promised to reduce TIP, the tax on oil.
One factor driving up prices has been the inability of consuming countries to increase refinement capacity. Hurricane Katrina highlighted this. The storm shut down 10 per cent of US capacity, sending oil prices past $70 a barrel and petrol to more than $3 a gallon at many US pumps.
By Carola Hoyos and Javier Blas in London
Published: September 12 2005 21:53 | Last updated: September 12 2005 21:53
The world's biggest oil producers have significantly boosted investment in oil exploration for the first time in nearly two decades.
The Organisation of the Petroleum Exporting Countries, the cartel controlling 75 per cent of the world's oil reserves, on Monday revealed its most important members had drilled 7.5 per cent more wells last year than in 2003 in response to the oil price boom. Opec's annual statistical bulletin also showed that the number of rigs in operation within the 11-member cartel rose 18.8 per cent last year after dropping by almost 6 per cent a year earlier.
There were 248 rigs operating in the Middle East in August, the most since November 1988 and 100 more than the average during the 1990s, according to oil services company Baker Hughes. Opec's news came as consuming countries sought to deflect the blame for high oil prices from their own lack of investment in refining capacity and slow progress in curbing demand for large, fuel-inefficient cars. Meeting in Manchester, Europe's finance ministers called on Opec to increase output. Gordon Brown, UK chancellor, said he had personally urged Saudi Arabia to supply more oil.
Dominique de Villepin, the French prime minister, is expected on Tuesday to announce measures to help commuters and workers cope with high fuel prices. French road hauliers lifted their blockades of wholesale petrol depots after Dominique Perben, transport minister, promised to reduce TIP, the tax on oil.
One factor driving up prices has been the inability of consuming countries to increase refinement capacity. Hurricane Katrina highlighted this. The storm shut down 10 per cent of US capacity, sending oil prices past $70 a barrel and petrol to more than $3 a gallon at many US pumps.
posted by Marcel at 4:35 PM
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