The Financial Times reports that “The world’s biggest oil producers have boosted their search for oil and gas to one of the highest levels in two decades as prices yesterday neared highs of more than $78 a barrel.”

“The Organization of Petroleum Exporting countries (OPEC), the cartel that controls three-quarters of global oil reserves, said yesterday that its members operated 336 oil rigs last year, an increase of 11.5 percent since 2005, in response to strong demand from developing countries such as China and India.”

OPEC has been financing its capacity expansion on record revenues of $650 billion last year up 22 percent from 2005. According to FT, “the sharp increase in OPEC’s new investments could reduce the risk of oil demand outstripping supply and lessen long-term oil pressures.”

Saudia Arabia, the world’s largest oil producer, managed 75 oil rigs last year an increase of 70.5 percent and it drilled 382 new oil wells last year.

OPEC claims its members will invest up to $120 billion in the medium term to raise capacity.

To read the entire article from the Financial Times, link here:

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