• 17 hours PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 19 hours Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 21 hours Syrian Rebels Relinquish Control Of Major Gas Field
  • 22 hours Schlumberger Warns Of Moderating Investment In North America
  • 23 hours Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 24 hours Energy Regulators Look To Guard Grid From Cyberattacks
  • 1 day Mexico Says OPEC Has Not Approached It For Deal Extension
  • 1 day New Video Game Targets Oil Infrastructure
  • 1 day Shell Restarts Bonny Light Exports
  • 1 day Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 1 day Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 2 days British Utility Companies Brace For Major Reforms
  • 2 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 2 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 2 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 2 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 2 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 2 days Rosneft Signs $400M Deal With Kurdistan
  • 2 days Kinder Morgan Warns About Trans Mountain Delays
  • 2 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 3 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 3 days Russia, Saudis Team Up To Boost Fracking Tech
  • 3 days Conflicting News Spurs Doubt On Aramco IPO
  • 3 days Exxon Starts Production At New Refinery In Texas
  • 3 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 4 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 4 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 4 days China To Take 5% Of Rosneft’s Output In New Deal
  • 4 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 4 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 4 days VW Fails To Secure Critical Commodity For EVs
  • 4 days Enbridge Pipeline Expansion Finally Approved
  • 4 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 4 days OPEC Oil Deal Compliance Falls To 86%
  • 5 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 5 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 5 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 5 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 5 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 5 days Aramco Says No Plans To Shelve IPO
Oil Markets Fear Iraqi Escalation

Oil Markets Fear Iraqi Escalation

The military operation by Iraqi…

Is Hydrogen Fuel As Dumb As Musk Thinks?

Is Hydrogen Fuel As Dumb As Musk Thinks?

Hydrogen fuel cells have been…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Saudi Arabia Promises to Cover Shortages in World Oil Supply

Saudi Arabia Promises to Cover Shortages in World Oil Supply

The escalating problems with Iran threatening to disrupt world oil supply, an event that could prove decidedly deadly to the many economies trying to recover from recent recessions. Current economies are built on and around oil so it is in their interests to maintain a constant and secure supply. Saudi Arabia has thankfully come to the rescue and assured us that it will be able to cover any shortages that may arise in the future.

Saudi Arabian Oil Minister, Ali al-Naimi, has guaranteed that due to the continuous investment made by the gulf kingdom into oil production capacity it will be able to meet any future oil market shortages. In fact they could increase output by roughly 2 million bpd "almost immediately".

"It is because of our ongoing investment that Saudi Arabia is able to respond to shortages around the world - take issues with Libyan production last year for example," Naimi said. "And it's because of our investment that any future shortages will be handled."

Some may worry that the rapid growth occurring in Saudi Arabia, which has seen domestic oil consumption rise by more than 5 percent a year between 2003 and 2010 to an average of 2.4 million bpd, will reduce the available supply for export. However, again Naimi promises us that, "Saudi Arabia's domestic growth will not impact on exports now or in the future.”

This is in part due to government investment into oil, and also due to the increasing supply of natural gas that the kingdom is producing, which they intend to use for their own rising domestic energy demands.

In fact so confident is Naimi that he suggests it is not supply that is the worry, but the demand. He said Europe is facing "a difficult time" and it is clear that its economic readjustment will result in falling demand for goods and services, such as oil.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage

Leave a comment
  • Ken Talbott on February 20 2012 said:
    Instant confirmation of your point, as the day after
    Iran's preemptive strike against the European oil embargo, the Saudis dramatically cut--not increase--their oil production, driving their profit skyward.
  • Fred Banks on January 31 2012 said:
    Well James, if you really believe that Saudi Arabia will cover deficits in the output of oil, you have got to stop smoking that stuff.

    I wont bother to explain that statement, because I have explained it to people all over the world. I'm amazed though that they dont get the message.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News