Saudi Arabia seems unfazed by the forecast of the World Oil Outlook’s annual report that the demand for oil produced by the 12 members of the Organization of the Petroleum Exporting Countries (OPEC) will fall by 2018. The rise in production of shale gas and oil coupled with the increasing interest in renewable sources of energy are expected to be the cause. However, Prince Abdulaziz Bin Salman Bin Abdulaziz reiterated in a conference in Dubai that Saudi Arabia will not reduce its production capacity and they “welcome new resources of energy supplies”.
Experts have concluded that United States shale output will reduce the request for oil from OPEC countries. Prince Abdulaziz serves as Saudi’s deputy oil minister stated that all sorts of sources of energy “are needed” because “the world economy over the long term will need every contribution of every source of energy available”. He doesn’t consider it to be a threat to their interest as far as there is an established “growth pattern” of the global economy.
The Prince turned down speculations that the income generated from its oil and gas exportations will contract. He pointed out that the oil market is “a very stable market” well supplied and studies have proved that it “will continue to be well supplied”. He stated that current oil prices are “good for everybody” and encourages more production. Prince Abdulaziz thinks that the international economy is not affected by the prices in “any bad way” as he showed his appreciation of those in Texas dedicated to increasing their production.
Saudi Arabia would only consider cutting its production to support oil prices if prices fall significantly, Abdulaziz said. In the past months, similar remarks were made by Oil Minister Ali al-Naimi.
KSA welcomes resources of energy supplies
