Saudi Arabia Reveals Oil Output Is Near Its Ceiling

Washington Post ^

[FarCenter]

For years, Saudi oil ministers and royals have sidestepped one of the most important questions the energy market faces: What is the long-term upper limit of the kingdom’s oilfields? The guesstimate was that they could always pump more, and for longer; if the Saudis knew the answer, they kept it secret. And then, almost casually on Saturday, Prince Mohammed broke the news, revealing that the ultimate maximum capacity is 13 million barrels a day.

Prince Mohammed framed his answer emphasizing that the world — and not just countries like Saudi Arabia — needs to invest in fossil-fuels production over the next two decades to meet growing global demand and avoid energy shortages. “The kingdom will do its part in this regard, as it announced an increase in its production capacity to 13 million barrels per day, after which the kingdom will not have any additional capacity to increase production,” he said in a wide-ranging speech.

It bears repeating: Saudi Arabia, the holder of the world’s largest oil reserves, is telling the world that in the not-so-distant future it “will not have any additional capacity to increase production.” Let that sink in. The first part of his announcement was well known. In 2020, Riyadh instructed its state-owned oil giant Saudi Aramco to embark on a multiyear, multibillion-dollar program to boost its maximum production capacity to 13 million barrels by 2027, up from 12 million. The project is ongoing, with the first small additions coming online in 2024 followed by larger ones in the following three years.

But the second part was completely new, setting a hard ceiling at a much lower level than the Saudis have themselves discussed in the past. Back in 2004 and 2005, the kingdom made plans to expand its pumping capacity to 15 million if needed.

[caww]

They’ve been saying that to International Leaders all along....few who listen.

[butlerweave]

Well tell Biden that the US is not doing it’s fair share , the Democrats are always talking about fair share in taxes

[BereanBrain]

Fake News. Saudi IS NOT the largest proven reserves. You should stop reading if the first sentence is incorrect and demonstrates (1) they have not the slightest knowledge of what they are writing about and (2) It probably was written to further the “narrative”.

[devane617]

What happened to supply? We had plenty of cheap gas and then Biden did what? Where did the supply go and where did it stop being pumped? If anything we use less gas now than a couple years ago so supply should be there.

[PeterPrinciple]

Prince Mohammed framed his answer emphasizing that the world — and not just countries like Saudi Arabia — needs to invest in fossil-fuels production over the next two decades to meet growing global demand and avoid energy shortages.

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That is an interesting statement hidden in the article.

[PeterPrinciple]

Ultimately, there are only two routes to that outcome: Voluntarily, by shifting to low-carbon sources of energy such as nuclear power or wind; or by compulsion, via much higher oil prices, faster inflation and slower economic growth. If we don’t take the first path, we’ll be forced to follow the second.

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concluding paragraph.

[butlerweave]

and there’s still a crap load of undiscovered oil out there

[redgolum]

Nuke and wind are not going to help. Both have issues

[bitt]

who needs the Saudis?

DRILL, BABY, DRILL!

[Leaning Right]

This news is bound to upset Biden. But perhaps the Saudis are exaggerating. Biden should return to Saudi Arabia to check things out. But this time no fist-bumping. Perform the kowtow instead.

[Eccl 10:2]

The Mohorovicic Discontinuity, or “Moho,” is the boundary between the crust and the mantle.

I would invite fellow Freepers to read into this Moho.

The theory is that virtually all hydrocarbons are “manufactured” by the Earth down there under intense heat and pressure. None of this dinosaur corpse rotting crap. The term “fossil fuel” is an insult to human intelligence, and a tool of the Left to control their narrative.

[SpokeshaveReturns]

The Green River Formation contains the largest oil shale deposit in the world. It has been estimated that the oil shale reserves could equal up to 3 trillion barrels (480 billion cubic metres) of shale oil, up to half of which may be recoverable by shale oil extraction technologies (pyrolysis, hydrogenation, or thermal dissolution of kerogen in oil shale.

[rktman]

Sorry joe. We won’t be able to help you. You know. Like macaronee told you. Pay attention. Oh, sorry, he can’t.

[FarCenter]

Venezuela’s proven reserves are ahead by a couple percent.

See table, page 2. https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/statistical-review/bp-stats-review-2021-oil.pdf

Also note that the combined Saudi, Iran, Iraq, Kuwait, UAE total of 800+ billion barrels is much greater than Venezuela’s 300+ billion barrels.

[kiryandil]

The Washingsnot Pest would have laughed at and mocked Trump in this instance - but they go into Full Attack Mode for The Pantz-Shizzing Senile Klown...

[G Larry]

ya...just as Macron warned Biden a month ago.....

[Tea Party Terrorist]

Of course, there are huge areas of the Arabian desert that haven’t yet been explored for oil

[allendale]

The Russians are making a fortune selling “discounted” oil to the Chinese and Indians. The Indians are making fortunes selling refined products to the desperate Europeans. The Saudis are enjoying crude oil prices that exceed $100/barrel and get their feet licked by Biden. Meanwhile Americans are paying record amounts for gasoline and diesel. They are also suffering huge economic consequences of the lunatic assault on fossil fuels by the Biden cabal.

[bert]

And yet being apathetic, there are no conservative protestors at Nancy Pelosi’s or James Biden’s door way. There are no protestors on the mall Pennsylvania Avenue