$300 billion to boost Gulf oil by 10 million barrels a day

Dubai: A $300 billion (Dh1,101.96 billion) investment to boost oil production might pave the way for the Arabian Gulf to deliver an extra 10 million barrels of crude oil a day by 2015, said project research firm Proleads.

"Recent analysis of global oil production and development projects revealed that by 2015, world crude production capacity may rise from 87 million to 108 million barrels per day," said Emil Rademeyer, Director of Proleads.

"If all current projects across the region meet their projected targets in barrels of oil a day, then by 2015, the hydrocarbon rich countries of the Gulf Co-operation Council (GCC) will supply more than half the future added oil capacity."

The Proleads' analysis further revealed that within the GCC countries of Bahrain, Oman, Kuwait, Qatar, Saudi Arabia and the UAE, approved upstream oil projects designed to either maintain or increase production capacity have soared in value from below $1.5 billion (Dh5.5 billion) in 2006 to a 2008 peak of $30 billion (Dh110.196 billion). Across the GCC, Proleads also tracked a record of nearly 300 active upstream oil projects with a combined value of almost $300 billion (Dh1,101.96 billion).

"Saudi Arabia leads the way and may contribute more than half the 10 million barrels a day in added capacity if all projects meet their targets by 2015," Rademeyer said and added that with one-fifth of the world's oil reserves and low production costs, Saudi Arabia has made aggressive investments in the energy sector.

Between 2008 and 2009, Saudi Arabia may have an added production capacity of over 1.6 million barrels a day. By 2015, projects in Saudi Arabia may target 5.2 million barrels a day. By 2010, Qatar - richer in gas than oil – may produce 1.4 million barrels a day. By 2013, the UAE may have an added production capacity of almost 1.9 million barrels a day.

By 2011, Kuwait is expected to produce nearly one million barrels a day. Oman may achieve an added capacity of around 460,000 barrels a day by 2012, while by 2015, Bahrain may expect to increase capacity by 35,000 barrels a day.

The Proleads analysis revealed that by 2013, continued failure of Iraq may result in only an extra 300,000 barrels a day.