The Minister of Petroleum and Mineral Resources Ali bin Ibrahim Al-Naimi today delivered a lecture on local, regional and international impacts of Saudi oil policy.
The lecture, held at the headquarters of ASCWA in Beirut, was attended by Prince Abdul Aziz bin Salman bin Abdul Aziz, Assistant Minister of Petroleum and Mineral Resources for Petroleum Affairs, senior officials and diplomats.
Addressing the gathering, Al-Naimi said that the Kingdom’s oil reserves are estimated at 261 billion barrels, a quarter of the world’s proven reserves. The Kingdom produced an average of over 8 million barrels per day this year, representing 10% of global output.
Al-Naimi said that the Kingdom’s current oil policy is a continuation of its moderate policy in political, economic and social fields, which aims to promote stability of the international oil market by balancing supply and demand with appropriate commercial oil storage throughout the year. The Kingdom seeks to maintain reasonable prices that preserve the interests of both producers and consumers, working with OPEC to stabilise prices in the range of U.S.$22-28 per OPEC basket barrel. He noted that OPEC could only achieve a balance between supply and demand to affect the oil price but could not always determine price, which is controlled by other market factors. The Kingdom’s key role is to guarantee a surplus capacity which can be deployed at times of crisis.
Al-Naimi announced that early next year the Kingdom will invite international bidders to compete for contracts to establish a railway to transport bauxite and phosphates from the north of the Kingdom to the Gulf coast, where a new industrial city will be constructed to manufacture aluminium and fertilizers.
The Minister said that among the government’s strategic goals are the reduction of the Kingdom’s economic dependence on petroleum over forthcoming years, and the promotion of competitive economic development.
Source: SPA
