Oil price drives UAE’s net earning to earn over $45 billion in 2005, set to earn more in 2006
Posted: 18 January 2006
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Strong oil prices boosted the UAE's oil export earnings to their highest ever level of more than US$45 billion in 2005 and the income is projected to be even higher this year, according to official US estimates.
 Revised estimates by the Energy Information Administration (EIA) of the US Department of Energy showed the income of the UAE and its 10 partners in the Organisation of Petroleum Exporting Countries will also remain high in 2007 as crude prices are expected to be above $50 a barrel.
In its earlier scenario around mid 2005, EIA estimated the UAE's oil revenues at nearly $39 billion last year while it put OPEC's total crude export earnings at around $429 billion. But in revised projections issued at the start of this year, EIA put the UAE's oil export revenues at $45.6 billion in 2005 and expected the income to hit an all time high of around $53 billion in 2006 before slipping slightly to nearly $52.2 billion in 2007.
Last year's oil revenues were the highest oil income earned by the UAE since it began pumping crude in early 1960s. The surge was a result of a sharp increase in oil prices due to strong demand and other factors as well as a rise in the UAE's crude production, which was estimated at an average 2.4 million barrels per day.
According to EIA, the price of OPEC's basket of 11 crudes averaged around $51 per barrel in 2005 and is projected to remain as high as US$55.25 and US$52.5 in 2006 and 2007 respectively. It noted that the 2005 oil prices were more than triple their level in 1998, when prices collapsed below $10.
As for OPEC's combined revenues, EIA revised its estimates from $429.8 billion to $473.1 billion in 2005 and projected such earnings to surge to nearly $521.9 billion and $496.2 billion in 2006 and 2007 respectively.
Given its large production, Saudi Arabia netted the highest income in OPEC of around $153.3 billion in 2005 and its earnings are expected to climb further to nearly US$162 billion this year before slipping to $150.2 billion in 2007.
As for the other GCC members of OPEC, Kuwait's earnings were put at $39 billion in 2005 and nearly $44.1 billion and $41.1 billion in 2006 and 2007; while Qatar's income was estimated at $19.1 billion last year and around $23.3 billion and $23.0 billion in the next two years. (WAM)
Posted by Editor Pipeline Magazine
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