Chakib Khelil, Minister of Energy and Mines of Algeria and president of the OPEC named the causes that are affecting, according to his point of view, the current oil price increase.
These factors include; the crisis that unfolded in the USA during August and September of last year, which provoked a decrease of interest rates, the dollar devaluation, and the access of investment funds in the oil market; the geopolitical situation, showing the market a visible risk of war; and the addition of bioethanol into the energy market which has meant, according to Chakib Khelil, an important impact on the production of diesel on a worldwide basis.
The Minister of Algeria assured that it “is difficult to believe that we will to experience shortages in oil and gas distribution during the next 50 years” and declared that “Algeria is a country open to consider any kind of international initiatives.”
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Chakib Khelil also commented that the countries of the OPEC are open for any type of investment from international companies, although he admitted that at present there exist an embargo and they do not allow any investment in any countries of the OPEC.
Likewise, he emphasized on the fact that the members of this organisation only represent 40% of world production, having invested one hundred and twenty billion dollars in Upstream and sixty billion dollars in Downstream, and all this to pump four million barrels per day in 2012.
In addition, he called for the rest of producing countries to also make an effort in the areas of investment and responsibility within the sector. He added that in 2010 the production of the OPEC will represent 52% of world oil demand.
Likewise he indicated that international organisations are discussing (International Agency of the Energy, International Forum of the Energy and the OPEC) hot topics of the oil sector: an offer of transparency, from the perspective of consumer interests, of reserves and product flow, and the factors that influence the current rise of oil prices.
Predictions of Algeria’s production:
According to the Minister of Energy and Mines of Algeria, who was accompanied by Mohamed Meziane, Chairman and CEO of Sonatrach, the North African country produced 900.000 barrels of oil in the year 2000 and, it is currently producing 1,4 million barrels. In 2007 Algeria has had a gas production of 2.930 trillion cubic feet and, according to some analysts, it is necessary to wait for an increase of approximately 30 % for 2012.
Khelil also commented that in 2007, eighteen discoveries were made in Algeria, thanks to the collaboration of some projects with foreign companies. His forecast for 2008 is that 15 to 20 new discoveries will be made, and he predicted that they will find other deposits in order to satisfy worldwide demand.
