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JOHANNESBURG, Sept. 25 (Xinhuanet) -- Although the
supply of crude oil remains sufficient, the world currently experiencing an oil
price surge must learn to live with such a high pricing level in many years
forward, a world oil organization leader has said.
Eivald Roren, president of the
World Petroleum Council (WPC) which will kick off its triennial conference here
from Sunday, also said an extremely tight capacity in refining sector
bottlenecked the oil industry which has seen the price rocketing in the past
months.
The world has entered into a new price level and "I
can hardly see those days of 18 or 20 dollars per barrel of oil will come back,"
Roren told a press briefing ahead of the conference.
World crude prices surpassed the record 70 US dollars
a barrel after Hurricane Katrina hit the United States' vital Gulf Coast oil
production and refining region in late August, shutting in and damaging much of
the US refining and production capacity.
"I think we have to live with this new (price) level
in many years forward," Roren said.
He said although the supply of crude oil is
sufficient and the reserve capacity is ready for production, the bottleneck is
in refining industry.
The capacity for production in refining sector became
extremely tight even before the hurricane season, he said. It has been reported
that pre-Hurricane Katrina refining capacity in the United States was already at
the breaking point as refineries operating at 96 percent.
Roren said it will take a few weeks before those
refineries can start up again. The 18th World Petroleum Congress brings the
world's largest oil, petroleum and gas event to Africa for the first time, as
oil tops the global agenda.
The industry is expected to focus heavily on the
exploration and consolidating of activity around sustainable solutions,
according to Fred Ayanda Mjekula, chairman of the South African national
committee of the WPC.
The congress, which runs from September 25 to 29, is
expected to draw about 4,000 delegates from across the world including petroleum
industry pioneers and high level government representatives.
Founded in London in 1933, the WPC is an
international, unbiased, non-political organization that provides a forum for
discussing world issues facing the oil and gas industry. It is dedicated to
scientific advances in the oil and gas industries, technology transfer and to
promote the management of the world's petroleum resources for the benefit of
mankind. Enditem |