Middle East Economic Survey

VOL. XLVII

No 32

09-August-2004

SUPPLY/DEMAND

The High Capital Cost Of Incremental Saudi Crude Capacity

Amid resurgent global oil demand and thinning spare oil production capacity, the capital cost of developing incremental Saudi capacity will require an oil price of $16/B WTI on a stand-alone basis or $29/B WTI if the incremental cash flow is considered, according to a report issued by US-based Bernstein Investment Research. In its 23 June report Saudi:...