Saudi Arabia may boost crude oil production capacity by 1.5 million to 2.0 million barrels per day (bpd) in case strong world oil demand requires it to pump at full throttle, the head of the kingdom’s state oil company said Wednesday.
“If production is 10 million bpd, we will have to have 1.5-2.0 million bpd over and above that,” Abdallah Jumah, the president and chief executive of Saudi Aramco, said in London. He said the kingdom’s policy was always to have a cushion of 1.5 million to 2.0 million bpd of spare capacity over sustained production levels.
Saudi Aramco holds 10 million bpd of the kingdom’s total 10.5 million bpd capacity.
“We are seriously, today, looking at the possibility of putting additional capacity and raising our sustained capacity. Our wheels are moving,” Jumah said.
He said Aramco had investment scenarios for building capacity to 12 million or even 15 million barrels per day should market conditions warrant, and it was closer to adding to current capacity now than it was six months ago.
Saudi Oil Minister Ali al-Naimi said over the weekend that the country would produce 9.1 million bpd in June and was prepared to pump its maximum 10.5 million bpd if demand warranted.
Jumah said on Wednesday Aramco would meet demand of up to 10 million barrels per day.
He added that he expected sales of Saudi crude to China to grow from current levels of about 300,000 barrels per day.
“There is a limit with the refinery system they have,” he said, adding that changes to refineries would allow a higher consumption of Saudi oil.
Jumah also sought to soothe market fears for the security of Saudi supplies in the event of an attack.
“Our facilities are fully protected. We are really confident ... I sleep at night,” he said. Saudi Arabia is considering building additional oil production capacity of 1.5-2.0 million barrels per day (bpd) in case strong world oil demand requires it to pump at full throttle, the head of the kingdom's state oil company said on Wednesday.
"If production is 10 million bpd, we will have to have 1.5-2.0 million bpd over and above that," Abdallah Jumah, the president and chief executive of Saudi Aramco, said in London. Saudi Aramco holds 10 million bpd of the kingdom's total 10.5 million bpd capacity, including the neutral zone.
"We are seriously, today, looking at the possibility of putting additional capacity and raising our sustained capacity. Our wheels are moving."
Saudi Oil Minister Ali al-Naimi said at the weekend that the country would produce 9.1 million bpd in June and was prepared to pump its maximum 10.5 million bpd if demand warranted it.
