BAGHDAD / follow Baghdadi News / ... expect the Secretary-General of the Organization of Petroleum Exporting Countries "OPEC" Abdullah al-Badri that the crude oil market back to equilibrium during the second half of this year, pointing out that the first half was characterized by constantly abundance of the world's crude oil supply surplus for demand up to two million barrels per day.
Al-Badri said in the Journal of the Bulletin newly issued, and pursued / Baghdadi News / "The last few months have seen a wide heights supply of oil producers outside OPEC," adding that "Since 2008, the supply of oil has risen from countries outside the Organization of about six million barrels per day, while remained production OPEC steady at 30 million barrels per day. "
Badri stressed that "the demand for oil in 2014 was weaker than originally expected at the beginning of this year," noting that "the expectations of demand growth this year is better than last year, where demand growth in the last year a million barrels a day, is expected to reach to 1.2 million barrels per day this year. "
Badri said that "the global economy indicators carry optimistic and pessimistic expectations of both, but the OPEC expects that global economic growth recorded in the current year rate of 3.4%, compared with 3.2% in 2014".
Badri pointed out that "the global oil and gas industry went through a number of cycles and changes that affect the adaptation and evolution of the industry," adding that "the last period was difficult and a challenge for the market and their employees and there is no doubt that the past nine months was one of the most dangerous periods of volatility after several years of stability. "
Badri said that "the organization does not believe that the actual market fundamentals can offer a reasonable explanation for the loss of nearly 60% as a result of the decline in prices in the period between June 2014 and January 2015".
Badri said that "speculative activity without doubt was instrumental in this strange occurrence of crisis and emergency," noting that "the decline in current prices was a test for all producers and investors."
Badri said that "low oil prices mean less revenue for producers and thus cause less revenue in the preparation of austere budgets, and that despite the conviction OPEC that prices will recover without doubt, as has already happened in recent times, but it is clear that the industry is currently experiencing radical changes At the global level. "
Badri pointed to "a number of negative consequences during the last period due to lower prices, most notably the abolition of a number of projects or postponed along with the revision of investment plans, and reduce costs."
He stressed Badri "the need to recognize the current realities in the oil market, most notably the occurrence of variables, where is the current stage of the most difficult times experienced by the industry, so you have to realize that it can do a lot if focused on the balanced interest between the current status of the industry and what we can do in the future and ways of development of this vital industry, for example, must intensify our efforts to come up with new ways to reduce costs and achieve more efficient work in practice. "
Badri pointed to "the importance of enhancing cooperation between national oil companies and international oil companies and with service companies for joint cooperation and exchange of views on the best ways to ensure a more prosperous future for the industry."
Badri warned "the need to maintain R & D initiatives and the continued development of technologies that can help in the discovery, extraction and production of oil and gas reserves in a more cost-effective and sustainable development."
Badri said that "for producers may be useful to exploit the drop in oil prices to create incentives to use energy more efficiently and implement policies based on the diversification of energy sources."
He focused Badri "the need to be concerned stakeholders in the industry to the future vision of the evolution of the market," adding that "it is expected that the demand for energy rises by 60 per cent by 2040, with fossil fuels remain a central component in the global energy mix."
Badri said that "the world will need more oil investments, especially in the Middle East and North Africa, which will continue to be a major center for oil investments," asserting that "oil investments you need the market is estimated at ten trillion dollars between now and 2040".
Badri said that "the global demand for oil will increase the value of 21 million barrels per day in 2040 to hit 111 million barrels a day and that 75% of the growth in demand will come from Asia and the Middle East will continue to be the main supplier of oil and gas to Asia."
Badri said that "in spite of these statistics, it can not predict the future accurately and history proved the past nine months, the best proof of this is true," pointing to "the need to be stakeholders in the market developed the ability to cope with the changes and challenges in the coming years." .
Badri pointed out that "next market developments must study well a range of factors, mainly the potential impact of the negotiations of the United Nations on climate change and the role of financial markets and speculation in the oil market and energy policies in some consuming countries and bottlenecks workforce and how advances in technology and high production costs."
Badri said that "it is clear that there are tremendous opportunities for the growth of the industry despite the recent volatility and the current uncertainty, but it is without doubt the industry has a long-term positive vision for the future." Ended 21 /
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