High Oil Prices Fuel Middle East Growth

[phantom power]

February 06,2006 | WASHINGTON -- The Middle East, long recognized as a top oil producer, is taking on a new role as one of the world's fastest-growing regions for energy consumption.

The increased clip at which it burns petroleum -- twice its historical average and close to the growth rate of the Asia-Pacific region -- is contributing to tight oil supplies around the globe while demand continues to rise in the United States and China.

The growing thirst for fuel in countries such as Saudi Arabia, Qatar and Kuwait reflects strong economic growth induced by soaring global energy prices. Another factor is that U.S. military operations in Iraq and Afghanistan greatly depend on diesel and jet fuel purchased in the Persian Gulf.

This increased demand, which is only now starting to register with many experts, comes at a time when a debate is intensifying about whether a supply glut may develop in the next few years.

http://www.salon.com/wire/ap/archive.html?wire=D8FJRJL80.html