Saudi Arabia crude oil production - Saudi Arabia may expand oil production to meet global demands

Saudi Arabia crude oil production - Saudi Arabia may expand oil production to meet global demands : Saudi Arabia, the world’s largest oil producer, is considering expanding its oil production to meet rising demands led by growth in China, India and the Middle East.

The top oil exporter needs to pump at least 9 million barrels per day (bpd) of crude for the next few years to meet demands, according to a Reuters report citing a Petroleum Intelligence Weekly study. Discussions are understood to be taking place in Riyadh on whether the kingdom should raise oil output capacity beyond its current 12.5 million bpd. China’s current daily consumption of imported oil of 7 million barrels is expected to double by 2020, perhaps even earlier; India’s current oil imports are expected to triple to 5 million barrels by 2020. Both countries have among the fastest economic-growth rates in the world, import oil mainly from Gulf States.

Saudi Arabia’s proven crude oil reserves are 264.39 billion barrels, out of a total world figure of 1.33 trillion barrels. (Of this figure, the 12 members-states of OPEC, the Organization of Petroleum Exporting Countries, account for 79.60 percent, or 1.06 trillion; non-OPEC states, such as Canada, Russia, Norway and the United States, account for 272.9 billion barrels, or nearly 21 percent.)

Saudi Arabia’s desire to keep oil markets in balance meant it cut supply by 800,000 bpd in March, Reuters reported. But it pumped 9.125 million bpd in February to cover the gap in Libya’s output disruption, where the revolutionary uprisings led to exports being cut.

“Saudi sources expect the kingdom will need to keep oil output around 9 million bpd or higher over the next few years,” Reuters reported PIW as saying. The daily global demand for crude oil is expected to rise to 118 million barrels by 2030 from the current 89 million barrels.

Saudi Arabia, with an estimated population of 25 million, has an annual GDP of $622 billion and a GDP per capita of $24,200.

Reuters reported the kingdom was considering adding another 300,000 bpd at the oilfield Moneefa, which would increase the field’s potential capacity to 1.2 million bpd. Development is already underway oilfield Moneefa to take it to 900,000 bpd.

Saudi Arabia is also considering adding another 300,000 bpd capacity at Khurais, and 250,000 bpd at Shaybah, Reuters said. For the latest updates PRESS CTR + D or visit Stock Market news Today

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