MercoPress. South Atlantic News Agency

Saudi Arabia promises more oil

Saudi Arabia oil reserves are abundant and the Riyadh government is prepared to increase production in response to world demand said Saudi Energy and Mines minister Ali Al-Naimi in Washington.

During a conference at the Centre for International Strategic Studies Mr. Al-Naimi pointed out that Saudi Arabia has approximately 25% of the world's prove oil and gas reserves, will be increasing them by an additional "200 billion barrels".

"The increase in Saudi oil reserves will come from the discovery of new deposits" and further efforts to extract non detected crude from existent wells said Mr. Al-Naimi. "These enormous reserves will enable the kingdom to continue as a leading world producer for the next seventy to a hundred years, even if daily production is increased to 15 million barrels, which can very well happen in the next fifteen years", he added. The Saudi minister insisted that Riyadh is interested in a stable world oil market and good relations, sustained by sound economic practices, between exporting and consuming countries.

Mr. Al-Naimi indicated that the increase in oil prices during the last twelve months has been fueled mainly by the "perception that supply is insufficient to satisfy demand", and admitted that very high oil prices are not in the benefit of exporting countries. However he admitted the industry faces refining capacity bottlenecks plus a need for more efficiency and energy conservation practices. Improved information on supply and demand in the oil market is essential "as the world moves to a lesser dependency of hydrocarbons".

In related news OPEC lowered the world demand growth estimate for 2005 based on a lower than expected consumption in the first quarter.

The monthly report indicates OPEC expects demand to increase 1,82 million bpd totalling 83,94 million bpd, 80,000 below original estimates.

OPEC also reports that during April the cartel's production increased 276,000 bpd reaching 29,53 million bpd.