Top oil exporter Saudi Arabia needs to pump at least 9 million barrels per day (bpd) of crude for the next few years and is considering boosting capacity to meet rising demand, Petroleum Intelligence Weekly (PIW) said in a report citing Saudi sources this week.
Rising fuel demand led by growth in China, India and the Middle East has outpaced Riyadh's expectations, and Saudi Arabia now sees medium to long-term oil consumption higher than it had previously anticipated, trade publication PIW reported. "Saudi sources expect the kingdom will need to keep oil output around 9 million bpd or higher over the next few years," PIW said.
Saudi Oil Minister Ali al-Naimi said on Sunday the kingdom's April oil output may rise from March, when it pumped 8.292 million bpd. Output was above 9 million bpd as recently as February, when the kingdom produced 9.125 million bpd to plug the gap left by Libya, where civil war cut exports. Libyan output disruption, the threat of more supply cuts stemming from political tumult across the Middle East and North Africa, and strong growth in fuel demand helped push oil prices to 2.5-year highs this year. Brent crude rose to $127.02 a barrel earlier this month, the highest since August 2008, while US crude rose to $113.46.
Saudi was considering projects to boost Moneefa, Khurais and Shaybah oilfields, PIW said. Expansion would add another 300,000 bpd at Moneefa, taking that field's capacity to 1.2 million bpd, PIW said. The field is already under development to take it to 900,000 bpd.
Another 300,000 bpd could be added at Khurais, and 250,000 bpd at Shaybah, PIW reported. Projects were unlikely to go ahead this year, even if the kingdom decides to take them on, PIW added. Saudi Arabia has previously said it could take capacity to 15 million bpd when demand warranted, and detailed potential expansion plans during the run up in oil prices to nearly $150 a barrel in 2008.
Comments
Comments are closed for this article.