Aramco Official Outlines Plans for Increased Production

Although Khalid did not mention Matthew R. Simmons by name, Saudi Arabia has tried to reassure consuming nations that it will continue to be a reliable supplier since the Simmons & Co. International chairman questioned its ability to do so at the Norwegian-British Chamber of Commerce on April 27.

Among the concerns that Simmons expressed were that none of the supposedly known facts about Saudi Arabia’s reserves have been verified by third-party audits or field-specific data. Five “extremely mature” oil fields represent 90% of the kingdom’s production, while three “lesser giant oil fields” produce another 7%. “All are at risk of unplanned production collapse,” Simmons said.

Not every energy forecaster shares his concerns. G. Daniel Butler, a market analyst specializing in long-term forecasting at the US Energy Information Administration, said that the US government’s energy analysis group’s latest forecast to 2025 estimates Saudi reserves are sufficient to produce “certainly in the 15 million b/d range, and, late in the forecast period, in the 20 million b/d range.”
Oil & Gas Journal