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Page added on October 4, 2018
Saudi Arabia to invest $20 billion in spare oil production capacity
Saudi Arabia will invest $20 billion in the next few years to maintain and expand its spare oil production capacity, Saudi Energy Minister Khalid al-Falih said on Thursday.
Saudi Arabia’s oil production capacity stands at 12 million barrels per day.
6 Comments on "Saudi Arabia to invest $20 billion in spare oil production capacity"
Laci on Thu, 4th Oct 2018 9:02 am
More like 11 mbd for a sustained period, and the $20 billion investment is mostly meant to stem the decline.
BobIngdt on Thu, 4th Oct 2018 10:00 am
Exactly Laci.
Saudis will need to spend at least 20 billion every year to maintain 10.7 MM B p/d.
Can they do that w/ oil @ (only) $80?
$100?
pat on Thu, 4th Oct 2018 11:26 am
really see Saudis going back to 5-6 million inspite of all efforts, 20billion. Saudi may maintain 10.7mbpd for while before the drastic fall, decline.
CAM on Thu, 4th Oct 2018 12:30 pm
This is really not good news. By all accounts the Saudis are already in a cash flow bind. If they are going to invest (spend) 20 billion in their oil fields, this tells us all is not well!
roger on Thu, 4th Oct 2018 7:19 pm
Yep. It’s a fantasy that fiat dollars conjured up from thin air can replace/replenish oil production for more than a few years; which are already spent.
onlooker on Thu, 4th Oct 2018 9:05 pm
Yep, Roger. this lending is just allowing oil producers to extract from what would normally be the unprofitable oil plays of Shale/Tar sands. The inordinate amount of Debt this production has entailed proves that. PO is alive and well as the Oil Industry has to resort to ever more marginal reserves to keep the oil flowing