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Vienna, 2005/10/20 - Secretary General of OPEC said here Wednesday October 19 that the primary reason for high oil prices are shortage of refining capacity in production of oil derivatives.
Adnan Shabab-Edin added that there is adequate crude oil in the international markets but run-down and decrepit refineries cannot churn out the needed supplies leading to rise in oil prices.
"The consuming countries should take the lead in investments in new refineries to rein in the high oil prices," he added.
Speaking at the gathering of officials of the 21-member Asia-Pacific Economic Cooperation (APEC) forum on energy and mining in Gyeongju South Korea, Shabab-Edin added the cause for the consumers paying high price for oil is shortage of refining capacity and not oil stockpiles.
He said it is expected that OPEC will increase its production capacity from 32 million Barrels Per Day (BPD) to 38 million BPD by 2010.
South Korea is hosting the APEC energy gathering that runs to Thursday October 20.
The meeting is taking place ahead of the APEC summit scheduled for November 18-19 in the southern port city of Busan.
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