Saudi’s Maximum Capacity For Oil Production Is Not As Much As Previously Suggested

It very much looks like the Saudis don’t have that much room to pump extra oil, contrary to what President Joe Biden had hoped for in his recent visit.

Saudi Arabia’s Crown Prince Mohammed bin Salman on Saturday announced that the kingdom will be raising its production capacity to 13 million barrels per day by 2027 — meaning current capacity is already hitting the ceiling at an average of 10.7 million bpd in 2021. 

“After that,” Prince Mohammed added, “the Kingdom will not have any more capability to increase production.” 

This revelation is new to many as it was previously suggested that Saudi, which is also the country holding the world’s largest oil reserves, could go up to 15 million bpd. Javier Blas in Bloomberg op-ed cites a 2004 presentation where Aramco told CSIS in Washington that the company could sustain production levels at 10, 12 and 15 million bpd until up to 2054 if necessary. 

According to a recent Reuters report, industry sources are questioning whether 12 million bpd can be reached. A source with access to Aramco insiders said that the company would not be able to pump more than 11 million bpd without drawing on stocks.

This newly unveiled reality underlines long-term global economy concerns, there’s still a long fossil-fuel-hungry road ahead.


Information for this briefing was found via Twitter, Bloomberg, Reuters and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

First Majestic Encounters 711 g/t Silver Equivalent Over 8.0 Metres In Ongoing Exploration At Los Gatos

Related News

China Makes Historic Economic Partnership With Saudi Arabia

Chinese president Xi Jinping is making a landmark visit to the Middle East— the first...

Sunday, December 11, 2022, 06:27:00 PM

Is Saudi Arabia Poised to Profit from a US Imposing Tariffs on Canada Oil?

In a week marked by renewed attention on U.S. energy policy, a debate has emerged...

Thursday, January 23, 2025, 02:04:00 PM

US Oil Soars to $60 Amid Refinery Shutdowns, Supply Disruptions

The price of oil soared to nearly US$60 per barrel — the highest level in...

Tuesday, February 16, 2021, 02:45:00 PM

Greenwashing 101: How Saudi Aramco Tapped into Sustainable Funds Via An ESG Investment Loophole

The big-bad oil giant, Saudi Aramco, seems to have found an unlikely way to collect...

Wednesday, July 12, 2023, 06:20:00 AM

OPEC+ Sees Production Cut Amid Oil Market Disconnect – Saudi Energy Minister

The oil futures market might be increasingly disconnected from its fundamentals due to “very thin...

Wednesday, August 24, 2022, 10:52:00 AM