Saudi Oil Min: World Not Running Out of Oil; Panic Unnecessary

“We will continue to be the world’s most reliable supplier of energy,” he said, according to prepared remarks distributed ahead of his speech in San Francisco. “As evidence of this commitment, we are implementing a massive investment program that encompasses both upstream and downstream sectors.”

Oil markets aren’t exactly in a panic, but they have sent prices to once- astronomical levels near $50 a barrel on concerns supplies won’t keep pace with consumption when demand peaks later this year.

Naimi has long said the kingdom will tap its spare capacity to meet all its customers’ needs regardless of its OPEC quota. But he has also undermined the effect of that pledge to some degree by pointing out that the world’s refiners lack the capacity to process the heavier, higher-sulfur crude Saudi Arabia has left.
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