Arab countries have 57.5 percent of the world's oil reserves, according to a study by the Organization of Arab Petroleum Exporting Countries (OAPEC). The study reported the Arab countries' oil reserves were estimated at 683 billion barrels. The OAPEC study said Saudi Arabia ranked first place with most oil supply with 265 billion barrels, followed by Iraq, Kuwait and the U.A.E. The study reported Arab countries' gas reserves were estimated at 54 trillion cubic meters, equaling about 30.2 percent of the world reserves, according to estimates of 2010. The required investments to develop the oil sector are huge, clarifying that Saudi company of Aramco spent approximately U.S $62 billion to increase its production to12 million barrels per day. OAPEC said the U.A.E. planned to develop upper Zakoum field to produce 750 thousand barrels daily in 2017 instead of the 500 thousand that was produced in 2009. The study said the rate of production is related to the state of international markets as well as the policy of supply and demand, which controls the prices of energy in world markets. It is not meaningful to use up large quantities of oil while prices decline. The study stressed political and security situations play an important role in the production process and could limit oil production. Nigeria, for instance, witnessed sabotage of oil production facilities and kidnapping some labors in foreign companies. The study reported oil production in the Arab states went through many changes since its beginning. Although Arab states have more than half of global reserves, their production is still weak, only 30 percent of worldwide production in 2010. The Commonwealth states produced about 16 percent of the world's daily production in the same year and they have only 8.3 percent of the world reserves. According to OAPEC, the most important factor that can affect oil prices are policies of supply and demand, commercial oil stocks that companies keep for emergencies and strategic oil stocks, in the countries where oil is used excessively such as the U.S., Europe and China. There are other factors that affect production processes such as natural disasters, storms and hurricanes, speculation process as well as labors strikes. Estimates confirmed world capitalist investments in the field of exploration increased to U.S.$ 380 billion in 2010 compared to U.S. $ 361 billion in 2009. The study reported investments increased in 2010 by 17 percent since 2009 and yet they are still less than the value registered in 2008, an approximate of U.S $418 billion. The study expected investments will increase within the next three years. The states of the Gulf Cooperation Council (GCC) witnessed a notable increase in production and exploration industries, registering U.S.$ 204 billion, equaling about 9 percent rise since 2008. OAPEC was established upon a treaty concluded in January of 1968, during the Arab summit in August of 1967 in Sudan, between Kuwait, Saudi Arabia and Libya. The treaty was amended to open the door for other countries to join in. There are now 10 member countries, including Egypt.
