Saudi Arabia could raise oil output to stabilize market: Al-Falih

Saudi Arabia’s oil output could be raised by 1 or 2 million barrels per day (mbd) by using its spare capacities in order to stabilize the market, Saudi Energy Minister Khalid Al-Falih said on Tuesday at the ongoing Future Investment Initiative (FII) 2018 in Riyadh.

“We don’t rule out the Kingdom’s oil output will exceed the current level by 1-2 bpd going forward,” he said in a panel discussion, adding, “We’ll need to make judicious use of our spare capacities".

He said the upcoming OPEC meeting in December could see an agreement with at least 25 signatories with the objective stabilize the market and monitor it.

“In Dec, we’re going to ink agreement open-ended to monitor and stabilize oil market. In June we lifted ceiling on production, and produce as much as you can. Our efforts during the last few months to ease anxiety in the market have worked”.

On the current and future investment in oil production, he said investments are recovering.

“We are seeing significant flows returning, and not only in US shale, we are also seeing offshore and onshore mega projects coming back. Producers must work together against volatility,” he said.

The minister also said the Kingdom aims to be a major gas producer with oil and gas continuing to be major part of energy mix.

He pointed out that gas constitutes 50 percent of the energy mix in Saudi Arabia and Aramco may become one of the largest investors in the field of gas in two to three years to come.