ACCORDING to the International Energy Agency (IEA), Saudi Arabia is increasing its crude oil production which is a great surprise as at present Saudi Arabia is the highest crude oil producer in the world. Actually Saudi Arabia produced 12.58 million barrels crude oil in last August while the United States produced 12.20 million barrels at the same time. But the United States captured the top global position in oil production from April, 2014 when the international oil market price was raised to $115.00 dollars per barrel.
However, USA has already reduced its crude oil production due to increasing production cost and low international oil market price. The output in the US dropped by 460,000 barrels per day since May while Saudi Arabia increased its production significantly by 400,000 barrels at about the same time and the international market price of crude oil fell down to only $30.00 per barrel last January due to higher production and low export price strategy of Saudi Arabia. Saudi Arabian crude supply grew to 10.65 million barrels per day in July, before coming down to 10.60 million in August. Production has averaged 10.36 million barrels a day in the period from January to August, 2016, almost 200,000 barrels a day higher than the corresponding period in 2015.
The economy of Saudi Arabia is highly dependant on crude oil export and 95 per cent of its national revenues comes from crude oil-based industrial sectors. Besides, Saudi Arabia has 20 per cent of world's natural gas reserve, but it has very little opportunity to export gas in the global market due to unlimited home demand and usages. So, Saudi Arabia has no other option than increasing its crude oil production to strengthen its revenue and financial sectors.
Sherazur Rahman
Assistant Teacher
Joykuri Government Primary School,
Singra, Natore, Bangladesh.
sherazbd@gmail.com
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Increased crude oil production by Saudi Arabia
FE Team | Published: September 19, 2016 21:03:41 | Updated: October 22, 2017 16:36:27
Increased crude oil production by Saudi Arabia
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