Gulf Oil and Gas accountACCOUNT

Saudi Arabia Says Welcomes U.S. Shale Revolution

Source: Reuters 11/20/2013, Location: Middle East

Top oil exporter Saudi Arabia remains unconcerned by a rising tide of U.S. shale output which threatens to eat into OPEC's market share, its deputy oil minister said.

"The world economy over the long term will need every contribution of every source of energy available," Prince Abdulaziz Bin Salman Bin Abdulaziz said. "The kingdom welcomes new resources of energy supplies, as they are needed."

"We need to make sure that the world economy comes out decisively on a growth pattern and if that can be established I think that the world economic growth will be sufficient to handle growth from all sorts - shale oil, shale gas, tight oil and including renewable."

The Organization of the Petroleum Exporting Countries expects global demand for its crude to fall in the next five years because of increasing supplies outside the 12-member group from the boom in shale energy and other sources, according to its annual World Oil Outlook.

Abdulaziz was repeating the Saudi Arabian view expressed by Oil Minister Ali al-Naimi's last year. "It's a very stable market, it is well supplied. The future holds that the market will continue to be well supplied," Abdulaziz said.

U.S. shale oil is much more costly to produce than Middle East crude, but a surge in global oil prices over the last four years has made it economic to produce and reduced demand for other crudes. As long as the world economy continues to grow, there will be enough demand for both major production regions to keep pumping.

The North American shale oil surge, combined with record Saudi crude output, has helped arrest the rise in crude prices over the last year, with Benchmark Brent crude oil trading between $100 and $120 for most of the last 12 months.

Several oil ministers from the Organization of the Petroleum Exporting Countries have said over the last few weeks that they see the market as well supplied and stable and that they do not expect the group to change its output ceiling of 30 million barrels per day (bdp) when they meet in Vienna on Dec. 4.

Oil Shale News in Saudi Arabia >>

Saudi Arabia >>  7/10/2019 - McDermott International, Inc. (MDR) has been awarded a contract in excess of $1.5 billion for Package 4 of Saudi Aramco's Marjan Increment Development...
Saudi Arabia >>  7/9/2019 - Saudi Aramco has awarded 34 contracts with a total value of $18 billion for the engineering, procurement and construction of the Marjan and Berri incr...

Kuwait >>  7/1/2019 - Kuwait Oil Company (KOC) and Halliburton have signed an Integrated Offshore Drilling Services contract for six high-pressure high-temperature (HPHT) e...
Saudi Arabia >>  7/1/2019 - Saudi Aramco and Baker Hughes, a GE company (BHGE) signed a memorandum of understanding to create a new joint venture facility in Saudi Arabia to man...

United Arab Emirates >>  7/1/2019 - DP World PLC announces the acquisition of 100 per cent of Topaz Energy and Marine Limited (“Topaz”) from Renaissance Services SAOG and Standard Charte...
Saudi Arabia >>  6/24/2019 - McDermott International, Inc. announced a large contract award from Saudi Aramco for engineering, procurement, construction and installation (EPCI) se...

Related Categories: Coalbed Methane  General  Heavy Oil  Methane Clathrate  Oil Sands  Oil Shale  Shale Gas  Tight Gas  Tight Oil 

Related Articles: Coalbed Methane  General  Heavy Oil  Methane Clathrate  Oil Sands  Oil Shale  Shale Gas  Tight Gas  Tight Oil 


Saudi Arabia Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 |

More News

Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.