2005 - OPEC

Oil Market Developments
OPEC production
OPEC production in 2005, as reported by a number of selected secondary sources, averaged
29.9 million barrels a day (mb/d), which was 800,000 b/d higher than the 2004 average.
The rise was attributable to a series of production management decisions agreed by Member
Countries (MCs) in order instill calm and stability to the market. As indicated in Table 4, the
quarterly distribution of OPEC production in 2005 was 29.46 mb/d, 29.9 mb/d, 30.18 mb/d
and 29.91 mb/d, respectively.
Figure 1 (see page 18) shows the year-on-year (y-o-y) percentage change in the average
OPEC production for the period 1991–2005. As the graph indicates, increases in production
have accelerated since 2003, which witnessed a sharp increase of 6.34 per cent over 2002.
Production growth accelerated further in 2004 and although the y-o-y percentage growth was
less in 2005, overall production kept increasing in order to meet market demand for OPEC
oil. The increases were also a means of off-setting non-OPEC supply losses in certain regions
since 2003.
Figure 2 (see page 19) shows the steady growth in OPEC oil production (crude and natural
gas liquids) since 1990. In 1999, OPEC production declined, due to production cuts imple-
mented by MCs. In 2000, its production level was restored to reach 27.99 mb/d, while in
2001 and 2002 production declined again to reach levels of 27.23 mb/d and 25.36 mb/d,
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