Saudi Arabia to raise oil capacity in 'next few years'

Saudi Arabia has made plans to increase its oil production capacity to 12.5 million barrels per day from the current 11.0 million over the next few years, the kingdom's oil minister Ali al-Nuaimi said here Monday. "This year, we increased our total production capacity from 10.5 to 11.0 million barrels per day," Nuaimi told a conference in the British capital.
"We have also recently developed plans to increase Saudi Arabia sustainable production capacity to 12.5 million barrels per day over the next few years," he told the conference, entitled "Oil, Economic Change and the Business Sector in the Middle East."
As for the long term, "scenarios to raise the capacity to 15.0 million barrels per day can be set in motion if the global demand requires it", said Nuaimi, representing the world's biggest producer of crude.
"The decision to invest in added production capacity on this scale reflects our belief that demand for Saudi oil will continue to increase through the coming years," the minister told a group of business representatives and journalists.
"It also demonstrates our desire, at the same time, to maintain a reasonable spare capacity of no less than 1.5 million barrels per day."
"As in the past, the spare capacity helps assure the continuity of stable oil markets by making more oil available in times of supply dislocations or any unusual surge in demand," he added.
World oil prices have rocketed to record high points during 2004, largely because of an upsurge in global demand, notably from China. In October, prices topped 55 dollars a barrel in New York and 51 dollars in London trading.
On Monday, New York's main oil contract, light sweet crude for January delivery, was steady at 49.44 dollars per barrel in electronic deals.