NEW YORK, March 27 Global crude oil production
capacity may grow at a slower rate than previously expected
following a plunge in oil prices, Cambridge Energy Research
Associates said in a report Friday.
Lower oil prices, which have fallen around 65 percent from
record highs last July, have put at risk around 7.6 million
barrels per day of new planned oil capacity by 2014, the
consultancy in Cambridge, Massachusetts, said.
Lower investment prospects prompted CERA to revise its
global oil production capacity outlook to 101.4 million bpd for
2014, versus a "pre-collapse" forecast last year that capacity
would grow to 109 million bpd by 2014.
CERA said a period of tight oil supplies and sharply higher
prices could result from the slowing growth in global oil
output capacity when consumer demand recovers, which it expects
to happen in 2010.
Among the most likely areas to suffer project postponements
are "new heavy oil and deep water projects and deep water
projects and countries with difficult fiscal regimes," CERA
It said 35 projects in OPEC countries may be delayed.
(Reporting by Joshua Schneyer; Editing by Walter Bagley)