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Page added on August 12, 2011
New High for Saudi Oil Production
According to OPEC, Saudi Arabian production increased to 9.75mbd in July. This is a modern record (though they produced more back in the 1980-1981 timeframe). However, they didn’t achieve the 10mbd that press reports were suggesting back in June. Whether because the press had the target wrong, or because they couldn’t quite manage the goal, we are left to speculate.
It will be very interesting to see if they can maintain or further increase this level. However, if they can’t, the current stock market chaos and drop in oil prices will provide them the perfect cover to reduce production on claims of lower demand.
The increase from May to July is about 800 or 900kbd – still some way short of making up for the loss of Libyan production.
2 Comments on "New High for Saudi Oil Production"
notbob on Fri, 12th Aug 2011 5:54 pm
The biggest obstacle to oil production is rigs and technical know-how. Remember, even the most conservative estimate of KSA’s oil reserves peg it at 10-15x the current US reserves. The US can still pump 7mbd despite having much lower overall reserves. The KSA should have no problem ramping up production. Whether that production offsets declines in other countries or meets current demand is another thing.
MrEnergyCzar on Sat, 13th Aug 2011 2:09 am
They still pump more seawater in each day (I think 11mbd) than they get out in oil….