Owais
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Opec poised for record $522b revenues this year Washington: Opec's revenues from crude oil sales are expected to hit record levels in 2006, reaching as high as $521.9 billion.
Opec, which controls more than 70 per cent of the world's proven oil reserves, recorded a staggering increase in earnings by nearly 43 per cent to $473 billion in 2005 because of a sharp rise in crude prices. This year's income is projected to surge to $521.9 billion before it slips back to around $495.2 billion in 2007, the Energy Information Administration (EIA) of the US Department of Energy said in its report.
However, after adjusting for inflation, Opec's income for 2006 will still remain below income realised in 1980, according to US estimates, when oil export earnings reach $571.8 billion when adjusted for inflation.
Oil prices are expected to remain strong and the 11 members of Opec are pumping at near record levels.
"Opec net oil export revenues in real (inflation adjusted) terms are currently running nearly triple the average annual revenues seen during the 1990s, but remain below the peaks reached in 1980 and 1981," it said. "The boom-bust cycle of oil revenues seen over the past 30 years (the 1973 and 1979 oil price shocks; the 1985-86 oil price collapse; the 1990-91 Iraq crisis and oil price spike; the 1997-98 Asian economic crisis and oil price collapse; the current uncertainty regarding terrorist threats, Middle East instability, surging oil demand, etc), makes long-term budgetary planning a challenge in many Opec countries, and also complicates efforts to deal with balance of payments deficits, accumulated debt, budget problems, economic reform and rapid population growth."
Opec, which controls more than 70 per cent of the world's proven oil reserves, recorded a staggering increase in earnings by nearly 43 per cent to $473 billion in 2005 because of a sharp rise in crude prices. This year's income is projected to surge to $521.9 billion before it slips back to around $495.2 billion in 2007, the Energy Information Administration (EIA) of the US Department of Energy said in its report.
However, after adjusting for inflation, Opec's income for 2006 will still remain below income realised in 1980, according to US estimates, when oil export earnings reach $571.8 billion when adjusted for inflation.
Oil prices are expected to remain strong and the 11 members of Opec are pumping at near record levels.
"Opec net oil export revenues in real (inflation adjusted) terms are currently running nearly triple the average annual revenues seen during the 1990s, but remain below the peaks reached in 1980 and 1981," it said. "The boom-bust cycle of oil revenues seen over the past 30 years (the 1973 and 1979 oil price shocks; the 1985-86 oil price collapse; the 1990-91 Iraq crisis and oil price spike; the 1997-98 Asian economic crisis and oil price collapse; the current uncertainty regarding terrorist threats, Middle East instability, surging oil demand, etc), makes long-term budgetary planning a challenge in many Opec countries, and also complicates efforts to deal with balance of payments deficits, accumulated debt, budget problems, economic reform and rapid population growth."
