$100 pb is Reasonable Price for Oil: Bahraini Energy Minister
Bahraini Minister of Energy Abdul Hussein Mirza said Bahrain believed that the USD 100 per barrel is reasonable price for crude oil.
Mirza stated that the fair and reasonable price for the crude is USD 100 pb because states planning investments in energy, now, face high costs for times of easy drilling have gone.
On Iranian threats to block the strategic Hormuz strait, Mirza ruled out such an eventuality because such a drastic measure would be harmful to “all the parties and any country that threatens to close the Hormuz strait is actually threatening itself.” Elaborating, he indicated that such possible closure of the passageway would not last for a long time because nations of the globe could not tolerate 40 percent of shortage of oil supplies.
In the past times, the prices were linked to basic factors, such as supply and demand, but nowadays, politics have become the dominant influential factor, said Mirza in the interview with the Kuwaiti news agency.
Iranian threats to close Hormuz and Israeli warnings of possible attack on Iran have contributed in pushing the prices high. The prices now should not go up but they are being affected with geopolitical events, he added.
Speaking on sidelines of the International Energy Forum, held here, Mirza expressed gratitude to Kuwait for hosting the event.
On Bahrain’s oil output, he said the country produces 195,000 barrels per day, including 45,000 barrels from Bahrain field and 300,000 bpd from Bou-Safah field — shared by Saudi Arabia.
Bahrain’s share of the crude from Abu-Safah, 150,000 bpd, is exported, and the 45,000 barrels extracted from Bahrain field are sent to the national refinery. However, the country buys from Saudi Arabia every day, 230,000 barrels via a pipeline, erected in 1945. This amount is also shifted to the refinery for production of derivatives for exportation, except for 10 percent, locally consumed.
Regarding new development projects in the sector, Mirza indicated at plans to develop Bahrain field, which was discovered in 1932 — the oldest oil field in the whole Gulf. He also indicated at a planned project for extracting gas from 15,000-20,000 cubic feet depths.
