MercoPress. South Atlantic News Agency

OPEC promises 38 million bpd by 2010

The Organization of Petroleum Exporting Countries, OPEC, announced Wednesday during a meeting of the Asia-Pacific Economic Cooperation forum, (APEC), forum that it will increase oil production by five million barrels per day reaching a daily production of 38 million barrels in the next five years.

OPEC secretary general Adnan Shihab-Eldin told APEC Energy ministers meeting in South Korea that this will represent a 17% increase over current production but cautioned that "it's difficult to forecast a barrel of oil below 40 US dollars".

He also insisted that the strong surge in oil prices was mainly caused by insufficient refining capacity in consumer countries and called on them to invest in expanding refinery plants.

During the meeting OPEC accepted the idea of establishing a "hot line" with the 21 country members of APEC which represent 59% of world oil production consumption, a project that will be formally considered in the cartel's December meeting.

APEC Energy ministers also signed a declaration committing the area to expand the development of new crude sources, investment in new refineries and increase research into energy alternatives to petroleum.

To address volatile crude prices reads the declaration, "a spectrum of measures is needed, both regarding fuel supply and demand", including the development of natural gas as an alternative to crude.

Representatives share the idea that to reduce the region's oil dependency, "the increase in natural gas production is the best option".

With this in mind a "Gas Forum" will be organized in the framework of APEC with contributions from governments, private sector and non government organizations.

The final statement emphasized that the surge in crude prices is "of great concern for the sustainable development of APEC member economies".

The main purpose of the Energy ministers meeting in South Korea was preparing the agenda for APEC leaders' summit scheduled November 18/19 in the city of Pusan.

APEC is made up of Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, South Korea, Philippines, Russia, Singapore, Taiwan, Thailand, United States and Vietnam.