As the Organization of Petroleum Exporting Countries, OPEC keeps oil supply steady, it has been revealed that the injection of bio-fuel through Corn and Sugar cane could jerk up oil production capacity to three million a barrel on daily basis.
This is coming just as oil prices set fresh record of $118 a dollar yesterday.
OPEC’s crude oil supply to the global market has been projected to rise from 30 million barrels to 50 million barrels by 2030.
Mr. Scot Newman, Vice-President of Exxon mobil Corporation disclosed that world energy demand is expected to hit 325 million barrels of oil within this year.
According to the ExxonMobil Chief, condensate produced by OPEC member nations like Algeria, Angola, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi-Arabia, United Arab Emirates (UAE) and Venezuela is expected to grow from one million barrels to over 3million within the period under review.
He revealed that hydrocarbons produced from fossil fuel world remain relevant and significant as a major source of energy on the future.
Speaking on the use of electricity to energize economic growth and development, he revealed that the United States topped the chart, followed by Asia-Pacific countries in the club of the Organisation of Economic Corporation and Development (OECD) that clinched the second position slot.
European countries occupy the third position while African countries occupied the bottom spot in the data, adding that electricity usage in the non-OECD countries with higher populations is expected to rise above 70 per cent within the period.
According to him, coal would assume a dominant role in the generation of electricity in the developing countries because it is cheaper and affordable.
He noted that the nuclear source of power generation which has raised concerns in the developing world would become one of the major sources of electricity generation in the developed countries.
According to him, the world now has over 435 nuclear reactors generating electricity and other civilian goods and services.
He said that proper disposal of radioactive wastes would remain a major issue for the oil and gas sector and the governments in the future.
He further said that economic growth would remain a strong drive for energy demand over a long period.
Yesterday, US light, sweet crude hit a record high of $117.40 a barrel, while of Brent crude peaked at $114.65 a barrel.
The impending closure of a large oil refinery in Scotland, ahead of strike by workers, and its potential impact on North Sea supplies worried traders.
The International Energy Agency (IEA) reiterated that prices were too high.
A range of factors including the uncertain situation at Grangemouth – one of the largest refineries in the UK – and fresh attacks by militants on pipelines in Nigeria spurred prices on.
If oil-producing countries were to maintain their current level of production, inventories would be replenished
A Nigerian militant group claimed it had carried out two attacks on oil pipelines in the south of the country.
Royal Dutch Shell said yesterday that previous attacks on a pipeline in Nigeria last week would lead to a drop in production of about 169,000 barrels per day for shipments in April and May.
Tratfor – Strategic Intelligence
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