Countries increase control of oil

Press, Volume CXIV, Issue 33601, 1 August 1974, Page 17

Countries increase control of oil

(N. Z.P.A.-Reuter—Copyright)

CARACAS, July 31. The members of the Organisation of Petroleum Exporting Countries (0.P.E.C.) will control 74 per cent of their crude oil production next year, compared with only 22 per cent in 1973, the Venezuelan Mines Ministry said yesterday. The Mines Minister (Mr Valentin Hernandez) said that for the time being Venezuela would not reduce its production of some three million barrels of crude oil a day. In an official report, the Ministry said that in 1973 the international oil companies controlled 78 per cent of crude oil processed in the O.P.E.C. countries and their

share would drop to 26 per cent next year. It said that this could happen because of participation agreements between some producer countries and the oij companies and nationalisation measures taken in certain countries. Oil-consuming countries import more than 80 per cent of their oil from the O.P.E.C. members—Abu Dhabi, Algeria, Ecuador, Gabon (associate), Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria Qatar, Saudi Arabia, and Venezuela. He was believed to be referring to demands by some opposition politicians that Venezuela reduce its production to preserve its reserves. Venezuela, one of the world’s major oil exporters, has already reduced its production from 3.400,000 barrels a day in 1973 to 2,950.000 barrels this year as part of its policy to conserve reserves.