Wednesday, March 30, 2011

OPEC to Make $1T This Year

 The Organization of Petroleum Exporting Countries was bound to make a windfall this year. With oil prices again surging over $100 it now appears that these states will make a larger profit than previously expected.

The total? Over one trillion dollars. That's $1,000,000,000,000,000. That's also about 2/3 of this year's budget deficit.

“It would be the first time in the history of Opec that oil revenues have reached a trillion dollars. It’s mainly because of higher prices and higher production,” Mr Birol said in a Financial Times interview. “However, Saudi Arabia has made substantial efforts to calm down the oil markets by increasing production and hinder prices from going higher.”

The estimate, based on total Opec production including natural gas liquids, does not take inflation into account. “Depending on your choice of specific inflation adjustment, the 2008 number may be slightly higher [in real terms],” Mr Birol said. 


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