2004 News Story

Oil minister reaffirms Saudi pledge to increase production of crude

Minister of Petroleum and Mineral Resources Ali Al-Naimi issued a statement today affirming the Kingdom’s endeavor, in collaboration with the other OPEC countries, “to ensure the stability of the international oil market and prevent oil prices from escalating in a way that may negatively affect the world economy or oil demand." He pointed out that to achieve this, Saudi Arabia has over the past three months increased its production of crude by more than one million barrels per day, raising the average daily production to 9.3 million barrels. This, he said, becomes 10 million barrels when condensates and gas liquids are factored in.

Minister Al-Naimi went on to pledge that although in the forthcoming month of September the total demand for Saudi crude in European, Asian and North American markets, in addition to domestic requirements, is expected to exceed that figure of 9.3 million barrels bpd, this demand will be met in full, with no exclusions or reductions. "The Kingdom”, he declared, “is well prepared to meet all the requirements of the international oil companies if they need additional volumes, relying on its surplus production capacity of more than 1.3 million barrels daily, which could be used immediately if required.”

In conclusion, he reiterated that the Kingdom's oil policy aims at avoiding any shortage of oil supplies in the global oil market, providing sufficient oil when it is needed, and preventing price fluctuations that may impact global economies, especially those of developing countries. 

[See related transcript of foreign affairs advisor's TV interview]