Current oil prices lower than 1980: BP<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The recent surge in oil prices that recently reached a high of
\nUS$40 a barrel in real terms was actually half the price level
\nreached in 1980 due to a weaker dollar and adjustments for
\ninflation, Europe's leading energy firm BP Plc announced.<\/p>\n
Michael D. Smith, BP's head of energy analysis, said oil
\nprices in 1980 would be equivalent to $80 a barrel today.<\/p>\n
\"In adjusted-inflation terms the oil price of $40 a barrel is
\nonly half the level of 1980,\" Smith said during the launching of
\nBP's Statistical Review of World Energy on Wednesday.<\/p>\n
Oil prices shot up to a 21-year high at $41 a barrel on
\nconcerns over a lack of supply due to security problems in Iraq
\nand stronger global demand.<\/p>\n
Smith said it was possible for oil prices to dip back below
\n$30 a barrel in the next 18 months.<\/p>\n
BP also pointed out that oil prices in nominal terms had their
\nhighest ever average in 2003. Brent crude averaged $28.83 a
\nbarrel.<\/p>\n
Aside from the war in Iraq and supply disruptions in oil
\nproducing countries such as Nigeria, there were other events in
\nthe past 18 months which had led to the stronger oil prices,
\nSmith said.<\/p>\n
Strong oil demand from China and the shutting down of Japanese
\nnuclear power plants in 2003 had contributed to increasing global
\noil demand.<\/p>\n
The review noted that oil was still the primary energy source
\nfor most people. Oil consumption grew strongly in 2003 despite
\nhigh oil prices. Consumption grew by almost 1.5 million barrels a
\nday (bpd), or 2.1 percent, which was above the 10-year annual
\naverage growth rate of 1.6 percent.<\/p>\n
Total oil output from the Organization of Petroleum Exporting
\nCountries (OPEC) increased by 1.88 million bpd. Most of that
\noutput increase came from the world's top oil producer Saudi
\nArabia whose production rose by one million bpd to hit a 22-year
\nhigh of over 9.8 million bpd.<\/p>\n
Oil output from countries outside OPEC grew by 830,000 bpd in
\n2003 which was lower than the 1.33 million bpd in 2002. But it
\nwas still above the 10-year average.<\/p>\n
Smith said discoveries of new reserves could still compensate
\nfor the high consumption.<\/p>\n
\"While production continued to be replaced, through a
\ncombination of new discoveries and existing reserves, the
\nchallenge, of course, is to invest adequately in order to develop
\nfuture reserves,\" he added.<\/p>\n
While oil consumption remains strong, world natural gas
\nconsumption weakened by 2 percent in 2003 because U.S.
\nconsumption, which is the world's largest market, contracted by
\nalmost 5 percent.<\/p>",
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