Venezuela Oil Min: Global Oil Capacity At Its Limit
13:41 EDT Tuesday, August 16, 2005
CARACAS -(Dow Jones)- The world's oil producing countries have no
spare oil production capacity left and some oil producers have even
seen output decline, Venezuelan Oil Minister Rafael Ramirez said
during a television interview Tuesday.
"There is a production capacity that is at its limit in all
oil-producing countries," said Ramirez.
"There is an important decline in non-OPEC countries, in the North
Sea there is a decline of at least 200,000 barrels a day," added
Ramirez.
Ramirez said a two-month oil strike in Venezuela that shut in output
at the world's fifth largest exporter for two months created the
conditions for the current price rally. He added that the war in
Iraq is also responsible for the record prices this year.
"The impact that the sabotage to our oil industry had on the oil
market was probably a chain reaction that the (oil market) has not
recovered from," said Ramirez
The oil strike, organized by opponents of left-wing President Hugo
Chavez in December 2002, cost the country $13 billion in damages and
lost oil sales, according to the government.
Ramirez said the tightening oil market will make it easier for
Venezuela to find new clients for its oil if the country decides to
halt oil sales to the U.S. Over the weekend Chavez renewed a threat
to halt U.S. oil sales if relations with Washington continue
deteriorating.
"We are willing, within the concept of security and defense of the
nation, to maintain our industry with or without the U.S.," said
Ramirez.
Analysts, however, say Venezuela will have difficulties selling its
heavy grade of oil to refiners outside of the U.S., who do not have
special plants to remove sulfur from Venezuelan crude.
Chavez is a fierce critic of U.S. foreign policy and accuses
President George W. Bush of backing a 2002 coup against him.
Washington denies the charges, but U.S. officials describe Chavez as
authoritarian and a threat to stability in the region.
Last week the U.S. denied visas to three Venezuelan military
officers amid accusations from Chavez that the U.S. Drug Enforcement
Agency was involved in spying operations here.
-By Peter Millard, Dow Jones Newswires;58212-5641339;
peter.millard@...;
(END) Dow Jones Newswires
08-16-05 1341ET
groups.yahoo.com |
