Higher crude oil prices could boost the Organisation of Petroleum Exporting Countries (OPEC’s) earnings from oil export to $1,011 trillion in 2011, the United States Energy Information Administration (EIA) has said.
Last year, the group earned $778 billion in net oil export revenues, a 35 percent increase from 2009. Saudi Arabia earned the largest share of these earnings, $225 billion, representing 29 percent of total OPEC revenues.
On a per capita basis, OPEC net oil export earnings reached $2,074tn in 2010, according to the department’s forecasting arm.
The EIA, in its just -released August 2011 Short-term Energy Outlook also projected that the OPEC’s crude export earnings could reach $1,105trillion in 2012.
OPEC member countries are Nigeria, Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Qatar, Saudi Arabia, United Arab Emirates and Venezuela.
In its monthly Oil Report released last week, the 12- member organisation stated that its crude oil output rose by 400,000 barrels per day (bpd) in July and reached 30.05 million barrels per day (mbpd), its highest since December 2008.
Much of the increase, according to the report, came from OPEC kingpin Saudi Arabia and Angola, which helped to offset production declines by Iran, Iraq, Nigeria and Libya.
OPEC and the EIA both revised their oil demand growth estimates on the heels of a worsening economic outlook. Specifically OPEC slightly lowered its forecast for 2012 crude oil demand noting that demand for crude was expected to reach 88.14 million mbpd in 2011, down from a previous forecast of 89.50 mbpd.
The organisation said crude oil demand in 2011 and 2012 would rise by less than previously forecast because of sluggish economic growth in the rich world. “Oil demand is set to rise by 1.2 million barrels to 88.14 million barrels per day (bpd) this year. One barrel equals 159 litres. This represents a rise of 1.39 per cent on 2010, compared with a previously estimated rise of 1.57 per cent”, the group said in the report.
“World oil demand is forecast to grow by 1.2 mbpd in 2011, representing a downward revision of 0.15 mbpd. Economic worries along with high oil prices have affected Organisation for Economic Cooperation and Development (OECD) oil demand, leading to weaker-than-expected consumption during the summer driving season. Oil demand in the OECD is expected to continue its contraction after a temporary rebound last year”, said OPEC, whose members provide about 35 percent of the world’s crude oil and has more than three-quarters of its reserves. Meanwhile, Brent crude for September fell as low as $107 a barrel and traded 48 cents lower at 4107.54 earlier on Friday.