The Saudi Arabia's Oil reserves; what happens next? #Saudi Arabia #oilreserves #energy #future #opec
Channel: Betiching heart & artis
Date: 2024-02-02

The depletion of Saudi Arabia’s oil is a topic that has been debated for decades, as the kingdom relies heavily on its oil reserves for its economy and security. Saudi Arabia has the world’s second-largest proven oil reserves, after Venezuela, with about 266 billion barrels of oil.                                                                                                                                                                     However, some analysts have questioned the accuracy and sustainability of Saudi Arabia’s oil production and capacity, as well as the impact of its oil policies on the global market.

According to a Bloomberg report in 2019, Saudi Arabia’s biggest oil field, Ghawar, which accounts for more than half of its total output, is fading faster than anyone guessed.                                                                                                       The report claimed that Ghawar’s maximum production capacity has fallen from 5.8 million barrels per day (mbd) in 2018 to 3.8 mbd in 2019, based on data from Saudi Aramco’s bond prospectus. This suggests that Saudi Arabia’s overall production capacity of 12 mbd may be overstated, and that the kingdom may face challenges in maintaining its output and market share in the future.

However, Saudi Arabia has also taken steps to diversify its economy and energy sources, as well as to invest in new oil fields and technologies. For example, Saudi Arabia aims to generate 50% of its electricity from renewable sources by 2030, and to reduce its domestic oil consumption by improving energy efficiency and increasing natural gas use. Saudi Arabia has also developed new oil fields, such as Khurais and Shaybah, and enhanced its oil recovery methods, such as water injection and horizontal drilling. Saudi Arabia has also maintained its spare production capacity of about 2 mbd, which gives it the ability to adjust its output to balance supply and demand, and to influence oil prices.
The depletion of Saudi Arabia’s oil is not a simple or imminent issue, but rather a complex and long-term one. It depends on various factors, such as the accuracy of reserve estimates, the rate of production decline, the level of demand growth, the pace of technological innovation, and the geopolitical situation.                                                                                                                                                  Saudi Arabia has shown resilience and adaptability in managing its oil resources and policies, but it also faces uncertainties and challenges in the changing energy landscape.