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The other oil producers, however, are not rushing to expand output.
The move will create 1,500 new jobs and expand output by 26percentt at the two plants.
"You've got extraordinarily strong demand for petroleum, and very limited ability to expand output," Mr. Felmy said.
In the early phases of an economic boom, productivity rises as businesses expand output without hiring new workers.
"After five years of record increases in oil prices, producers are still unable to sufficiently expand output.
Other members of OPEC could readily expand output to make up for all of the blocked Iraqi and Kuwaiti oil.
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The mining company may spend $400 million expanding output.
So expanding output in Africa should be profitable.
But enough to dampen the enthusiasm of exporting companies which might be thinking of expanding output.
Even in those countries that are expanding output it remains high.
So even if demand for Burgundy is buoyant, the scope for expanding output is strictly limited.
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