Saudi Aramco Crude Oil Production Dropped 1.7% in 2006

Saudi Aramco’s annual production of crude oil dropped 1.7% to 3.253 billion barrels (8.9 million barrels per day) in 2006 from 3.309 billion barrels in 2005 (9.1 million barrels per day), according to the company’s Annual Review for 2006.

Natural gas production increased 4.5%, however, from 7.871 billion SCF daily in 2005 to 8.224 billion SCF daily in 2006.
State-owned Saudi Aramco is the world’s largest oil company, and holder of the world’s largest crude oil reserves.

In the review, Aramco said that it currently has half a dozen major crude oil development projects underway at various stages that will increase its maximum crude oil production capability by some 3 million barrels per day—roughly 20% over its current maximum capability and 33% over its average daily production level in 2006.

Matthew Simmons, founder of the energy investment bank Simmons & Co and former energy adviser to President Bush, for one has concluded that the Saudi oil reserves—which are absolutely essential to any scenarios of fulfilling future demand—are overstated and that production there may already have peaked.

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