In line with the increasing demand for oil and oil products, most economies in the region had already outlined their expansion plans to ensure. Expansion in capacity expansion was viewed as a move towards enhancing the oil supply on a global scale, with most of the changes scheduled for 2009-11.
As indicated by the, Saudi Aramco, and ADNOC among other firms have delayed their expansion projects until after 2011. Other plans to expand the production capacity over 2008-15 are still underway, although the delay in the initial projects are bound to impact the achievement of these plans. TheMiddle Eastexpected to add 3.8 million barrels per day by 2015, with most of these changes occurring in a phased manner. The production versus capacity as indicated in appendix indicates that the difference between the capacity and actual production was greatest during the period when the crisis was at its crest. Prior to the economic crisis, there were signs of cost escalation causing significant delays among contractors who were expected to implement the plans. Top among the reason for the inability to implement these plans was directly attributable to unavailability of finances, recession in demand for oil products, and the unavailability of sufficient upstream logistical structures to handle the expanded production.
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