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Citation |
Oil Energy Trends 2007; 32(7): 3-6. |
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Copyright |
(Copyright © 2007, John Wiley and Sons) |
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DOI |
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PMID |
unavailable |
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Abstract |
At first sight, OPEC appears to have a great deal of spare production capacity: over 5 mn bpd in all. On further examination, it is clear that most of this consists either of heavy crude oil for which there is little or no market under present conditions, or of capacity that is shut-in by violence and civil unrest. OPEC's effective spare production capacity is probably less than 1 mn bpd, which may account for its recent decision not to increase output during the second and third quarters of the year. It also makes it unlikely that OPEC will have much additional oil to offer already tight markets as demand undergoes its normal seasonal rise at the end of the year. |