Saudi Arabia’s New Oil Fields
Sebastian Abbot of the Associated Press wrote a very informative article today about our oil supply and how much Saudi Arabia can help the oil supply and help the gas prices. The article is called “Giant Saudi field is key to boosting oil output.” What happens in Khurias Oil Field, which is the last underdeveloped giant oil field in Saudi Arabia in the next year will be the single largest expansion of oil production in history and it could help us, the drivers, to not have to pay as much at the pump in the future. Saudi Arabia’s state owned oil company, Aramco, will be spending about $10 billion to build the oil field to pump 1.2 million barrels of oil per day. This should happen by next June, but there is a shortage of qualified workers, so this project could be delayed. Currently, the Saudis produce about 11 million barrels of oil per day and after this project it will pump 12.5 million barrels per day by 2009.
What is interesting is that many nations have tried to push Saudi Arabia to produce even more oil saying that they are not meeting the demand. Saudi Arabia disagrees, stating that ”financial speculators and the falling dollar are to blame for high oil prices, not a shortage of supply.” Saudi Arabia also has stated that it could produce up to 15 million barrels of oil per day in the future if needed, but has no intention of doing so this currently. I guess what we need to do if hope that the oil expansion is done by next June as planned so that a few more million barrels are produced daily to help relieve some stress of the demand. Also, if everyone conserved just alittle bit of oil through smaller cars and so on, we could help the gas prices go down as well. Think Green!