The Minister of Petroleum and Mineral Resources, Eng. Ali bin Ibrahim Al-Naimi emphasized the importance of the role of the Kingdom of Saudi Arabia in the stability of the world oil market.
In a press conference held here today following the patronization of the Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz of the inauguration ceremony of the International Energy Forum Secretariat headquarters and the launching of Joint Oil Data Initiative (JODI), he said that world gives a great weight to the Kingdom's role in the supply and stability of the world oil market.
Replying to a question, he said the Kingdom's producing capacity will reach 12.5 million barrels at the end of 2009.
Eng. Al-Naimi noted that the Kingdom does not intend to play the role of a price swing producer, but it builds its facilities on the expected demand level.
The Minister indicated that supply is greater than demand; oil storage has been built and the market is satisfied. Consequently, there is no need for additional steps, he said and added that refineries in the world have been unable to meet consumers' needs.
He pointed out that the Kingdom's accession to the World Trade Organization will better integrate the Kingdom into the world economy, making its role more important in the future.
Al-Naimi stressed that investment in producing and refining operations is necessary due to the economic growth in the world.
The Minister pointed out that 30 to 35 percent of the price of a barrel of oil goes towards the cost of production, marketing and freight and the remaining 65 percent goes on tax on fuel.
Al-Naimi hoped that the Secretary General of the International Energy Forum takes into consideration the recommendation that the Secretariat sets a mechanism to ensure the producers' interests.
Replying to another question on his remarks that the Kingdom intends to spend more than 50 billion on production expansion projects, he said that investment portfolios exceed 50 billion and the accurate amount will be set later following feasibility studies.
He affirmed that the Kingdom has the least level of depletion in the world since it has the largest reserves.
The Minister of Petroleum and Mineral Resources noted that the Kingdom does not set oil prices in the world, but prices are set in accordance with the world oil market.
He expressed his confidence that the Kingdom will raise its oil reserves to more than 200 billion.
