“Any cuts in expenditure will have substantial and long-lasting impact on the producers and the market”, said Bahrain Energy Minister Abdul Mirza, speaking at the Apicorp conference in Bahrain today. Oil has tumbled since the middle of a year ago as U.S. stockpiles and production expanded, contributing with Opec to global oversupply.
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Major oil projects in Bahrain include the 350,000 barrel-a-day (b/d) AB pipeline linking Bahrain and Saudi Arabia, which recently started the engineering, procurement and construction (EPC) phase.
“All investment planned in the UAE is on track and we haven’t seen a change in any plans”, said Neyadi.
And he backed up comments by UAE energy minister Suhail Mohamed Al Mazrouei on Wednesday, in which he defended last year’s decision by OPEC to maintain high oil output levels despite falling prices.
“The economies of all Arab countries, including non-oil-producers, are closely linked”.
“Large investments are required to meet such needs”.
Addressing the opening ceremony, the deputy premier said that HRH Premier’s patronage of the forum testifies to his interest in the energy sector and keenness to enhance cooperation in the fields of power and in oil industries for the best interests of the national economy. This correlation is expected to continue for several decades, bringing into focus the importance of the development, as well as the vertical and horizontal expansion, of the oil industry, including the continuation of new oil discoveries. Crude demand is expected to rise by one million barrels a day every year in this decade, and the world requires more investments in oil to compensate for decline rates, he said.
He said: “The challenges we are facing in the Arab world means increased need for joint action between all members of the GCC and its institutions, to invest in the field of oil and gas while also working to offset and reduce emissions”.
Saudi Oil Minister Ali Al Naimi called for sustained investment in new output capacity yesterday despite the slump in world prices.
“As you know, energy sources, most notably oil and gas, are among the fundamentals of modern global economy”. Shell shares rose 1.6%.
“Saudi Arabia is a very reliable supplier”.
“Arab countries need to invest in the various stages of the oil industry, especially since these countries, whether oil-producing or non-oil-producing, are all in need of energy sources to fuel the continued economic growth and provide the basic needs of life”, said the minister during a seminar on the future of the energy industry in the Middle East and North Africa, held in Manama, Bahrain.
He also said that the Vietnam refinery is 60 percent complete.
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“In the field of funding, APICORP plays an important role in supporting the various operations of oil companies and their related activities”.
