UAE to up oil output capacity

Arab News

The UAE is seeking to increase its production capacity to 3.5 million barrels per day of crude oil to contribute to the stability of global markets, UAE Energy Minister Suhail Al-Mazrouei said.

OPEC member UAE currently pumps about 2.6 million barrels per day. The country is the fifth largest oil producing country in the team, behind Saudi Arabia, Iraq, Kuwait and Iran.

Al-Mazrouei said the rise would contribute to maintaining stability of global oil markets, but he did not disclose when they are going to increase the production.

"The recent events have proven that focusing on the security of energy is necessary in order to address natural disasters and geopolitical tensions as well as other unanticipated situations, which occur periodically in the world. That’s why the UAE undertook to construct an oil pipeline connecting Habshan-Fujairah to guarantee crude oil supplied to world market," he pointed out.

He was speaking at the opening session of the 21st Annual Middle East Petroleum and Gas conference, which began yesterday in Abu Dhabi.

Exports via Habshan-Fujairah route would allow the Gulf state to bypass the strategically vital Strait of Hormuz, which Iran has repeatedly threatened to close.

The minister added that some scenario stipulates that the global oil demand may increase by one million barrels a day until it reaches 105 million barrels a day by 2030, amid economic expansion in Asia and South America.

Will Oil Prices Kill the Recovery?

Daniel INDIVIGLIO*         The Atlantic

In the past six months, gas prices have climbed more than 70 cents, but in the past two weeks alone, they're up 34 cents. As the cost of gasoline rises, more money is drained from the pockets businesses and consumers. That cash could be compensating new hires, buying retail products, or even paying down debt. There are a number of different ways in which increasing oil prices endanger the U.S. recovery, but at what point will we really see the economy begin feel a shock?

The Constant Threat
There are a few ways to look at this question. One is to consider rising oil prices in a straightforward manner: the moment gasoline prices begin to rise, consumers and businesses will have less money to spend on other things. So in that sense, the economy has already begun to endure this change. While it's possible for some Americans to cut back a portion of leisure driving in response to higher gas prices, the millions of Americans who drive each day to work will see their commuting cost rise. And for those who do cut back on non-essential driving, their trips to shops, malls, and restaurants will decline, which will also indirectly impact overall spending.