OPEC investments fine, UAE official says

Jan. 10, 2013 at 6:28 AM
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ABU DHABI, United Arab Emirates, Jan. 10 (UPI) -- A UAE representative to the OPEC oil cartel said a modest outlook for 2013 doesn't mean oil suppliers will cut back on investments.

Ali Yabhouni, governor to the Organization of Petroleum Exporting Countries from the United Arab Emirates, told an energy forum in Abu Dhabi that he expected global demand to rise this year by 800,000 barrels per day.

That comes amid expectations that production from non-OPEC members could increase by 900,000 bpd, the Platts news service reports.

"It will leave little room for OPEC producers to increase their production," he said.

The International Energy Agency, in its 2012 edition of the World Energy Outlook, said exploiting unconventional reserves like tar sands oil, abundant in Canada, boosts the supply outlook for countries outside OPEC. The world, however, turns back to OPEC supplies after 2020, the IEA said.

Yabhouni told Platts that his expectations for 2013 were slightly optimistic given some economic recovery in late 2012 and growth in Asian economies.

"None of this means that OPEC will cut back on investment," he said.

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