Can OPEC raise its production of petroleum?
Many people suspect that the answer to this question may be no. Some publications report that Saudi Arabia is having production difficulties, as are several other OPEC countries (Kuwait, Iran, Nigeria and Venezuela). Saudi Arabia does not admit to any production problems. EIA data indicates declining oil production for Saudi Arabia, even before OPEC production cuts were announced in the fall of 2006. It is likely that we will learn the truth about OPEC’s ability to raise production this winter. OPEC has its next planned meeting in September. Unless something very unusual happens, there will be a need for significantly higher oil production. OPEC’s actions at that time will tell what the real situation is. 7. Doesn’t OPEC report very large oil reserves? It seems like those high reserves would assure us that OPEC can increase its production at will. No, the high reserves aren’t all that helpful. First, there are serious doubts about the accuracy of OPEC’s oil reserves. The reserves are n
