Saudi Gazette runs a story from Reuters noting that Saudi Arabia is not concerned about a huge increase in US oil production. It believes global demand will continue to grow at such a pace that Saudi oil production can continue at it current rate and still be very profitable. Rather than seeing a smaller piece of the global petroleum pie, Saudi Arabia will be taking a piece of a much bigger pie.
(Reuters) DUBAI – Saudi Arabia remains unconcerned by surging US shale output, which threatens to eat into OPEC’s market share, and sees no need to cut production to support prices, Deputy Oil Minister Prince Abdulaziz Bin Salman Bin Abdulaziz told a conference in Dubai on Wednesday.
“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,” he said.
“The world economy over the long term will need every contribution of every source of energy available,” he said. “The kingdom welcomes new resources of energy supplies, as they are needed.”
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.