OPEC countries have frozen 35 drilling projects

OPEC countries have rejected 35 oil exploration projects, whose economic viability was assured by the prices oil prices being "extremely low", said Monday in London the Secretary General, Abdallah el-Badri.

    On a total of 150 drilling projects planned by the OPEC members, 35 were rejected, some until 2013, said the secretary general of the cartel.

    The current oil prices discourage investments in the oil industry, "said el-Badri, emphasizing that security of supply in the medium term could be affected when oil demand picks up.

    The level "extremely low" of the prices and "under-investment" make a threat of a new flight courses at levels very detrimental to consumers, he said.

    Current prices "are in nobody's interest. This is the fate of all nations, producers and consumers of oil, which is at stake," said Mr. el-Badri.

    OPEC currently has excess capacity of production (production mobilized immediately in case of disruption in a region) to 8 million barrels per day (MBJ), also said Mr. el-Badri.

    This "safety cushion" has greatly expanded since the OPEC member countries have reduced their production to meet their quotas.

    In this regard, the secretary general of the cartel said OPEC was applied to 80% the production cuts agreed last year (4.2 million barrels per day from production last September).

    Mr. el-Badri also called consumer countries to improve data on the oil market and greater control over the speculation, in particular by strengthening the powers of the CFTC, the U.S. regulator.

    OPEC supplies about 40% of the approximately 85 million barrels burned every day, and it holds 80% of oil reserves.

    
    
Ennaharonline/ M. O.