U.S.: Oil Output 'Consistent and Steady'

Fri March 21, 2003 11:44 AM ET

WASHINGTON (Reuters) - U.S. Energy Secretary Spencer Abraham said Friday that world oil production is "consistent and steady" as U.S. and U.K. forces invaded Iraq, based on analysis from the Energy Information Administration.

Abraham cited data from the Energy Department's statistical agency that showed OPEC oil production totaled 26.5 million barrels per day as of Thursday, slightly lower than the November 2002 figure of 26.9 million barrels per day.

"This despite losing all production from Iraq and also incurring other production losses from Venezuela and Nigeria," Abraham said in a statement.

OPEC production began to decline after November, when a workers strike in cartel-member Venezuela disrupted that country's oil output and exports.

The Bush administration has said it believes world oil supplies are adequate to meet demand, especially with promises from OPEC-member Saudi Arabia and other major oil producers to increase output to make up the lost crude oil exports from Iraq.

Iraq was exporting about 1.7 million barrels of oil a day before the U.S. and British attack began.

"Working with International Energy Agency partners, we continue to monitor global oil market conditions. We appreciate the continued commitment by oil producing countries to ensure stability in the world oil markets," Abraham said.

EIA estimated that there was between 900,000 and 1.4 million barrels per day in total unused world oil production capacity, with most of that in Saudi Arabia.

About 30 oil wells in southern Iraq have been set on fire, according to British military officials.

Iraq was the seventh largest foreign oil supplier to the United States last year, shipping an average 440,000 barrels per day.