OPEC may dismiss U.S. call for more production
There's no need for the Organization of Petroleum Exporting Countries to increase output when the bloc next meets in Vienna on Feb. 1, Qatari Oil Minister Abdullah al-Attiyah said at a conference in Abu Dhabi on Sunday.
"The market is well-supplied. I don't think there's a need to increase (supply)," he said.
Qatar is one of OPEC's smallest oil producers with an output of around 800,000 barrels per day, Gulf News reported.
"Oil inventories are comfortable. If the market will not want physical oil, how can we move?" al-Attiyah said. "The price of oil is high because of speculation. We have to segregate the physical market from the paper market."
U.S. Energy Secretary Samuel Bodman recently urged OPEC to increase oil production to help bring down prices.
Oil prices have been rising in recent months because of geopolitical turmoil, shrinking energy stockpiles in consumer countries, shortage of refining capacity and a weak dollar that has triggered fear and driven speculative buying.
BP urges Middle East oil to go digital
Middle Eastern oil and gas producers could boost production through investment in technologies, a BP official said.
By "digitizing" oil fields and converging drilling, exploration and digital control techniques with standardized communications systems, production and reserves could be increased, said Peter Roberts, subsurface manager for BP in Abu Dhabi.
Roberts said any incremental increase through such technologies could be substantial.
"Sixty percent of the world's proven oil reserves are in the Middle East, amounting to 743 billion barrels," Roberts said. "If you consider that a 1 percent increase in reserves would amount to 7.4 billion barrels, you can imagine what even a small increase through the deployment of digital field technology could mean for the region's oil producers and for world markets."
BP will present its Advanced Collaborative Environments strategic program for the global implementation at an upcoming Field Development Conference in Abu Dhabi.
"By allowing people to work collaboratively regardless of distance, ACE enables enhanced productivity and delivers improved operational performance," Roberts said.
The company has successfully applied ACE technology at its oil and gas operations in Angola, Azerbaijan, the U.S. Gulf of Mexico, Indonesia, Scotland, Norway, and Trinidad and Tobago.
Report: BP eyes IPI pipeline
BP may be interested in laying the Iran-Pakistan-India pipeline on Pakistani territory, Pakistan's Daily Times reported.
A Pakistani official said contracts may be awarded to lay the pipeline through Pakistan, and all international oil and gas companies would be invited.
"Pakistan may float a tender to award contract after completion of feasibility study of the project," the official said. Oil and gas companies want security for the smooth supply of gas from Iran.
Pakistan has estimated $3 billion will be needed to lay the pipeline in its territory, and the government is likely to award the contract to an oil and gas company. Officials also said it was possible a consortium of oil and gas companies can lay the pipeline.
The deal is by no means assured. India and Pakistan are still haggling over transit fees, and the United States opposes the deal because of Iran's involvement. Security considerations in Pakistan also make the project an investment risk.
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Closing oil prices, Jan. 21, 3 p.m. London
Brent crude oil: $89.93
West Texas Intermediate crude oil: $90.73
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