OPEC nations may cancel plans to expand production capacity
OPEC nations may cancel plans to expand production capacity after crude prices plunged from a record, Kuwait's oil minister said.
Crude oil dropped as much as 30 percent to a low of $54.86 in November since it reached a record $78.40 a barrel on July 14 because of a warmer than expected winter in the U.S. and receding security concerns in OPEC producing nations, such as Nigeria where an insurgency threatened supplies last year.
The ten members of the group that adhere to production quotas, including Saudi Arabia and Qatar, plan projects estimated to cost $100 billion to increase daily output capacity to help meet rising demand, according to OPEC's official Web site.
Oil and gas services companies such as Halliburton Co., Schlumberger Ltd. and Technip SA are benefiting from a surge in orders at fields that had previously been deemed too costly to develop before crude oil's surge to a record this year.