Oil giants struggle to offset rising crude prices<\/p>\n
Glenn McKenzie, Associated Press, Lagos, Nigeria<\/p>\n
Leading oil exporters outside the Middle East have pledged to
\nboost production to offset soaring world prices - but it could be
\nmonths or years before Top 10 giants Russia, Nigeria and Mexico
\nreally manage to open their taps.<\/p>\n
In all three countries, building projects to clear pipeline
\nbottlenecks or boost production capacity are still works in
\nprogress, or not yet out of the talking stage.<\/p>\n
In Nigeria, at-times violent attacks on installations in the
\noil-rich Niger Delta persistently limit drilling - forcing
\nmultinational giants to abandon a few wells and pipeline stations
\nentirely.<\/p>\n
Russia, Nigeria and Mexico are the world's Nos. 2, 7 and 9 oil
\nexporters, according to U.S. Department of Energy rankings.<\/p>\n
\"On a longer term, at least one or two years, I think things
\nwill change - a big increase in production is possible,\" in those
\nthree nations, and in other African prospects, said Pieter Louw,
\na South Africa-based energy consultant.<\/p>\n
\"But in the short term, it's better to keep your little diesel
\ncar and don't expect big changes,\" Louw said. \"Nothing faster
\nthan three months.\"<\/p>\n
Weekend raids on Saudi oil compounds - heightening worries
\nabout security of Saudi oil - stand to make that timeline even
\nmore critical.<\/p>\n
Most oil markets were closed on Monday, but one open in Tokyo
\nindicated traders are concerned, with crude oil futures up.<\/p>\n
A Tokyo-based oil broker told Dow Jones Newswires on Monday
\nthat the al-Qaida-claimed attack was expected to have an effect
\non world oil markets - where prices perched at US$40 a barrel
\nlast week.<\/p>\n
In Qatar, Oil Minister Abdullah bin Hamad al-Attiya said on
\nMonday that a \"factor of fear\" already had pushed up prices by $8
\na barrel.<\/p>\n
Visiting Moscow before the attacks, U.S. Energy Secretary
\nSpencer Abraham cited the pledges of production increases from
\ngiants Russia, Nigeria and Mexico - saying he was puzzled why the
\nmarket hadn't already responded more favorably.<\/p>\n
That accumulation of production promises \"should have a
\nsignificant impact on world energy prices,\" Abraham insisted.<\/p>\n
But the pledges seem a long way from being met - at least in
\nways the world would notice.<\/p>\n
Mexico promised this month to do its part - but only by next
\nyear, when it has finished construction projects to boost
\ncapacity.<\/p>\n
Even then, the immediate output would swell by only a marginal
\n2-4 percent.<\/p>\n
Nigeria promised an extra 300,000 within 40 days, if the
\nmarket wanted it.<\/p>\n
Analysts are skeptical whether Nigeria - Africa's largest oil
\nproducer and the No. 5 source of U.S. oil imports - can go much
\nbeyond that modest target.<\/p>\n
A member of the Organization of Petroleum Exporting Countries
\n(OPEC), Nigeria already is nearly 300,000 barrels over its daily
\nexport quote of 1.93 million barrels.<\/p>\n
Crime and violence by ethnic militias vying for a share of
\nNigeria's oil wealth mean production cannot really go much
\nhigher, African oil industry analysts say.<\/p>\n
Armed attacks on installations and villages in the oil delta
\nhave cut about 7 percent of national production, in losses to
\nRoyal Dutch\/Shell and ChevronTexaco alone.<\/p>\n
Nigeria possibly could boost production to as much as 3
\nmillion in a year's time - at the risk of aggravating its oil-
\nregion violence, economist Bismarck Rewane said in Lagos, the
\ncommercial capital.<\/p>\n
In Russia, the problems are peaceful ones - pipelines, and
\nport facilities. Exports through the state-owned Transneft
\npipeline already are running at near-maximum capacity.<\/p>\n
President Vladimir Putin pushed for stepped-up efforts to
\nwiden trade routes during his state of the union address last
\nweek.<\/p>\n
With projects far from completion, industry experts agree any
\nsignificant Russian export boost is at least three years away.<\/p>",
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