Saudi Arabia aims to increase crude- oil reserves by 76 percent and gas reserves by 40 percent, to retain its position as the world's biggest petroleum exporter.
Saudi Oil Minister Ali al-Naimi said today the country plans to add 200 billion barrels of oil reserves to the 264 billion barrels it currently holds. It wants to lift gas reserves by 100 trillion cubic feet, or TCF. Saudi Arabia's current gas reserves stand at 250 TCF, he told a conference in the Lebanese capital of Beirut.
Oil consumers will rely on Saudi Arabia and other members of the Organization of Petroleum Exporting Countries to meet the greater part of the expected increase in demand this decade and next, as output from non-OPEC nations such as the U.S., U.K and Norway declines.
``What we need to know is how fast new reserves can be found and developed, as that's what would determine the value of oil and whether it's going to be affordable in the next decades,'' said Damien Cox, an analyst at U.K.-based John Hall Associates energy consultants.
Crude oil for June delivery was little changed at $63.14 a barrel on the New York Mercantile Exchange at 2:43 p.m. in London. Prices touched $62.74 a barrel yesterday, the lowest since April 20.
Expected Demand
Oil demand will rise to 116 million barrels a day from 85 million barrels a day at present, driven by economic growth in China and India, the most populous nations, according to the Paris-based International Energy Agency, an adviser to 26 oil- consuming nations.
Governments and companies need to invest $20 trillion on energy projects through 2030 to satisfy consumption requirements, the agency said in its annual report last November.
Saudi Arabia's current crude oil reserves, which amount to one quarter of the world's total, are enough to satisfy U.S. consumption for more than 35 years.
`All indications highlight the possibility of increasing these reserves by almost 200 billion barrels,'' said al-Naimi in his speech, without giving a timespan for new discoveries. Saudi Arabia's oil reserves grew by 1 percent between 2001 and 2005, according to estimates of BP Plc.
OPEC Supply
The 12 nations that make up OPEC account for more than 40 percent of the world's supply. They pumped 30 million barrels a day last month, with Saudi Arabia contributing 8.45 million barrels a day to the total, according to Bloomberg estimates.
``The Kingdom will continue to be the largest and the most important oil producer and exporter during the 21st century, just as it has been over the past half century,'' al-Naimi said.
Saudi Arabia and other OPEC members are investing in building spare production capacity to compensate for any supply disruptions, said al-Naimi.
``We have been successful in doing that over the past seven years,'' he said, referring to the conflict in Iraq, the war- torn nation that holds the world's third-largest oil reserves, behind Saudi Arabia and Iran.
``In terms of supply and demand and price levels, the international oil market will remain stable for many years to come,'' al-Naimi said.
Concern about supplies from Iran is keeping oil prices above $60 a barrel, double what they were four years ago. The U.S. suspects Iran of developing nuclear technology for military purposes. Iran, which produced at a rate of 3.9 million barrels of crude a day in April, denies this claim.
Discoveries
New discoveries in the Rub' al-Khali, or Empty Quarter desert, in the southeast of the kingdom, will boost gas reserves, said al-Naimi.
``Over the next 10 years we will be attempting to bring in a minimum of 100 trillion standard cubic feet of non-associated gas,'' he said.
Gas production will be for domestic use, as Saudi Arabia seeks to lift its output of petrochemicals by two thirds to 100 million metric tons a year in 2015, making the kingdom the world's third-largest producer, al-Naimi said.
Petrochemical plants use gas a feedstock to produce materials for the manufacture of plastics. The expansion of this industry will require investments of $70 billion from 2005 to 2012, he said.
Saudi Oil Minister Ali al-Naimi said today the country plans to add 200 billion barrels of oil reserves to the 264 billion barrels it currently holds. It wants to lift gas reserves by 100 trillion cubic feet, or TCF. Saudi Arabia's current gas reserves stand at 250 TCF, he told a conference in the Lebanese capital of Beirut.
Oil consumers will rely on Saudi Arabia and other members of the Organization of Petroleum Exporting Countries to meet the greater part of the expected increase in demand this decade and next, as output from non-OPEC nations such as the U.S., U.K and Norway declines.
``What we need to know is how fast new reserves can be found and developed, as that's what would determine the value of oil and whether it's going to be affordable in the next decades,'' said Damien Cox, an analyst at U.K.-based John Hall Associates energy consultants.
Crude oil for June delivery was little changed at $63.14 a barrel on the New York Mercantile Exchange at 2:43 p.m. in London. Prices touched $62.74 a barrel yesterday, the lowest since April 20.
Expected Demand
Oil demand will rise to 116 million barrels a day from 85 million barrels a day at present, driven by economic growth in China and India, the most populous nations, according to the Paris-based International Energy Agency, an adviser to 26 oil- consuming nations.
Governments and companies need to invest $20 trillion on energy projects through 2030 to satisfy consumption requirements, the agency said in its annual report last November.
Saudi Arabia's current crude oil reserves, which amount to one quarter of the world's total, are enough to satisfy U.S. consumption for more than 35 years.
`All indications highlight the possibility of increasing these reserves by almost 200 billion barrels,'' said al-Naimi in his speech, without giving a timespan for new discoveries. Saudi Arabia's oil reserves grew by 1 percent between 2001 and 2005, according to estimates of BP Plc.
OPEC Supply
The 12 nations that make up OPEC account for more than 40 percent of the world's supply. They pumped 30 million barrels a day last month, with Saudi Arabia contributing 8.45 million barrels a day to the total, according to Bloomberg estimates.
``The Kingdom will continue to be the largest and the most important oil producer and exporter during the 21st century, just as it has been over the past half century,'' al-Naimi said.
Saudi Arabia and other OPEC members are investing in building spare production capacity to compensate for any supply disruptions, said al-Naimi.
``We have been successful in doing that over the past seven years,'' he said, referring to the conflict in Iraq, the war- torn nation that holds the world's third-largest oil reserves, behind Saudi Arabia and Iran.
``In terms of supply and demand and price levels, the international oil market will remain stable for many years to come,'' al-Naimi said.
Concern about supplies from Iran is keeping oil prices above $60 a barrel, double what they were four years ago. The U.S. suspects Iran of developing nuclear technology for military purposes. Iran, which produced at a rate of 3.9 million barrels of crude a day in April, denies this claim.
Discoveries
New discoveries in the Rub' al-Khali, or Empty Quarter desert, in the southeast of the kingdom, will boost gas reserves, said al-Naimi.
``Over the next 10 years we will be attempting to bring in a minimum of 100 trillion standard cubic feet of non-associated gas,'' he said.
Gas production will be for domestic use, as Saudi Arabia seeks to lift its output of petrochemicals by two thirds to 100 million metric tons a year in 2015, making the kingdom the world's third-largest producer, al-Naimi said.
Petrochemical plants use gas a feedstock to produce materials for the manufacture of plastics. The expansion of this industry will require investments of $70 billion from 2005 to 2012, he said.
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