|
Singapore, July 4: : plenty of crude to meet demand that does not mean there is an adequate supply of refined products, such as diesel and gasoline, as there is a lack of refining capacity.
Faced with planning battles and reluctance to invest in the downstream sector, which is not always profitable, the world's biggest energy consumer the United States has not built a new refinery for decades.
PEAK OIL?
Some analysts have questioned whether OPEC is capable of raising its output significantly.
The so-called pessimists have argued the world's oil supplies are at or near a peak.
Optimists say there is still plenty more oil and improved technology will ensure it can be extracted from the ground, but a host of political issues has hindered production from many of the biggest reserve holders.
Iraq's output has been disrupted by years of sanctions and then war. Sanctions have also limited exploration in Iran and violence has interrupted flows in Nigeria.
Adding to the difficulties of getting oil out of the ground, high prices have fuelled a trend for resource nationalism, or resource-holders seeking to keep the bulk of their natural wealth for themselves.
The biggest OPEC producers already prohibit foreign operators from accessing their oil reserves.
Non-OPEC Russia, the world's second biggest oil exporter, has also been limiting foreign involvement in its upstream while its output has stagnated....
More from Markets
| Single Page Format | Previous - 1 - 2 |
Discuss this story on expressindia forums
|
|
 |
 |
 |
About Us | Contact Us | Advertisers | Site Map | Make us your homepage | Work for Us | RSS | Subscribe | Electronic Edition | Privacy Policy2009: The Indian Express Limited. All rights reserved throughout the world
