WORLD demand for oil is expected to increase significantly over the next 25 years, and the oil-rich Arab Gulf states will be increasingly relied upon to supply it.

Almost 80% of the world’s oil reserves are controlled by OPEC, the Organization of Petroleum Exporting Countries, of which Kuwait was a founder member in 1960 together with Iran, Iraq, Saudi Arabia, and Venezuela.

The 11 members of OPEC today produce about 40% of the world’s crude oil and are responsible for around 60% of oil exports.  

OPEC’s objectives are order and stability in the international oil market. It coordinates petroleum policies among its member countries, with the aim of ensuring that supply and demand remain steady and secure, while prices for consumers, revenues for producers and returns to investors are fair and reasonable.

OPEC expects global demand for oil to increase by 28 million bpd to 111 million bpd by 2025—an average growth rate of 1.5% per annum. Much of it will come from developing nations—particularly China and India—whose consumption is expected to almost double.

Demand for 2006 is forecast to average 85.2 million bpd, an increase of 1.5 million bpd, or 1.9% over total 2005 consumption.

Despite the continuing rise in the price of crude, OPEC argues that the oil market remains well supplied and that its production should be more than sufficient to meet requirements.

It says it is committed to expand capacity in both the medium and the long term in order to meet the needs of consumers.

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