Saudi lifts oil output to record 10.5m bpd
London, August 29, 2013
Saudi Arabia is set to pump 10.5 million barrels a day of crude in the third quarter, a million bpd increment over the second quarter and its highest quarterly level of production ever, leading US energy consultancy Pira said.
"The reason they're producing that much is simple - the world needs the oil," said Pira CEO Gary Ross.
"This is the tightest physical balance on the world oil market I've seen for a long time." Pira reported its estimate to clients earlier this week.
Libyan oil output has fallen from 1.4 million bpd to just 250,000 bpd after protesters shut oilfields.
Saudi Arabia, Opec's biggest producer, is the only oil producer with any significant spare capacity.
Ross said about 400,000 bpd of the incremental supply would go to feed domestic Saudi power usage during peak summer demand for air conditioning.
He said that without another increase this year from US shale oil, the world would need be short of crude and oil prices much higher.
"Without US shale we'd be short about 1.5 million barrels a day in the third quarter and prices would have gone up dramatically to ration demand," said Ross.
US shale oil production was now about 2.5 million bpd, up 900,000 bpd in a year, he said. - Reuters
More Energy, Oil & Gas Stories
- Iranian oil import surges to one-year high
- Egypt will get oil aid from Arab states
- New technology for Bahrain's gas industry to save $300m
- Innovations key focus at Geoscience expo
- Iran seals gas export deal with Oman
- Total unit inks Elf Lubricants agreement
- Opec raises forecast for 2014 global oil demand
- Mitsui joins DME as trading member
- GE Power Conversion wins major SEC order
- Basra Light crude exports to rebound in April
- Aramco to produce unconventional gas for projects
- Alstom opens smart grid centre in Dubai
- Experts discuss key geosciences issues
- Egypt to permit factories to use coal for energy
- ME oil, gas transaction value up 15pc
- Victrex to showcase new product in Paris
- Aramco JV puts off giant refinery overhaul to 2015
- Libya threatens to bomb N Korean tanker
- Bahrain 'producing 850MW of surplus power'
- 2,000 experts for Bahrain geosciences summit
- Libyan rebels start oil exports, bypassing govt
- Dubai drilling company set for London IPO
- Opec output soars on higher Iraq exports
- S Korea to pay Iran $550m under nuke deal
- Qatar LPG exports will stay unchanged till 2018
- $14bn Bahrain energy sector focus for summit
- Iraq now world's fastest-growing oil exporter
- Old IT systems pose risk to oil firms
- Thomson Reuters adds commodity monitoring tool
- Oil below $90 to hit GCC economies