EOG Newspaper September 08 Issue - Egypt Oil & Gas

September 2008 - Issue 21
Managing Editor
Yomna Bassiouni
ybassiouni@egyptoil-gas.com
Media & Statistics
Monitoring
Ayman Rady
Reporter
Ahmed Morsy
Photographer
Ahmed Hamad
Contributors
Mohamed El-Sayed
Ashraf Said
Vice President
Laila Fayek
lfayek@egyptoil-gas.com
Business Development Officers
Laila Solaiman
Mustafa Ibrahim
Administrative Assistant
Basma Naguib
Senior Graphic Designer
Ahmed El-Degwy
Cartoonist / Designer
Ramy Ameen
Production Advisor
Mohamed Tantawy
Accountant
Abdallh Elgohary
Legal Advisor
Mohamed Ibrahim
Newspaper Technical Advisors
Eng. El-Sayed Orabi - EGPC
Geol.MagdyWedad - PICOEnergy
Dr. Mohamed Ghareeb - Lufkin
Eng. Said Zaki - Weatherford
This publication was founded by
Omar Donia, Mohamed Sabbour and Mohamed Fouad
Publisher
Mohamed Fouad
All rights to editorial matters in the newspaper are reserved by Egypt Oil and Gas and
no article may be reproduced or transmitted in whole or in part by
any means without prior written permission from the publisher.
Ups, downs and a $79-billion loss
Since the beginning of this year, oil prices have been heading to unprecedented
increases. 2008 is considered the year of records, in the background of the early months
of price increases!
The sudden ups and downs have caused a status of turmoil in the market. After the
unparalleled price increase reaching a peak of $147.27 a barrel on 11 July, oil prices
have sharply fallen to nearly $113 a barrel.
Crashing crude oil prices are set to cost OPEC (Organization of the Petroleum Exporting
Countries) a potential $79 billion in lost oil export revenue this year, and almost
$100 billion in 2009, according to a U.S. government’ energy forecasting agency.
Last month, OPEC had been forced to lower its forecast for global oil demand growth.
That was the fifth reduction this year, after cuts in July, June, May and February.
The 13-member group also said higher OPEC production, easing political tension
and a stronger US dollar indicated a weaker outlook for the oil market
“The softening economic situation has led to a further slowdown in oil demand
growth… Oil demand will rise by 1 million barrels per day this year, 30,000 bpd less
than the previous forecast,” announced OPEC in the report.
According to the Energy Information Administration (EIA), net oil export earnings
from OPEC are projected to hit a record $1.172 trillion this year; a 75% increase on the
$61 billion the group earned last year, despite the sobering predictions.
Through the first seven months of 2008, OPEC member nations have already raked
in around $642 billion from oil exports, with Saudi Arabia accounting for the biggest
share at $191 billion, reported the EIA.
OPEC expects the demand for its crude to average 32.05 million bpd in 2008, lower
than the group’s production in July of 32.64 million bpd.
“With current Opec production well above the expected demand for OPEC crude,
there is potential for a sharp build in crude oil inventories,” said the organization.
The end of 2008- oil agenda is unpredictable; factors threatening the market stability
are never controlled and I believe that more surprises are yet to come!
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