Oil reserves in Saudi Arabia
Encyclopedia
Proven oil reserves in Saudi Arabia
are the second largest claimed in the world, estimated to be 267 Goilbbl (Gbbl hereafter) including 2.5 Gbbl in the Saudi-Kuwaiti neutral zone
. These reserves were the largest in the world until Venezuela
announced they had increased their proven reserves
to 297 Gbbl in January 2011. The Saudi reserves are about one-fifth of the world's total conventional oil reserves, a large fraction of these reserves comes from a small number of very large oil fields, and past production amounts to 40% of the stated reserves.
, the biggest oil field in the world with an estimated 70 Gbbl of remaining reserves. 90% of Saudi Arabia's oil production comes from five fields and up to 60% of its production comes from the Ghawar field.
After US President Bush
asked the Saudis to raise production on a visit to Saudi Arabia in January 2008, and they declined, Bush questioned whether they had the ability to raise production any more. In the summer of 2008, Saudi Arabia announced an increase in planned production of 500,000 barrels per day. However, there are experts who believe Saudi oil production has already peaked or will do so in the near future.
book Twilight in the Desert, 200 technical papers on Saudi reserves by the Society of Petroleum Engineers
were analyzed to reach the conclusion that Saudi Arabia's oil production faces near term decline, and that it will not be able to consistently produce more than 2004 levels. Simmons also argues that the Saudis may have irretrievably damaged their large oil fields by over-pumping salt water into the fields in an effort to maintain the fields' pressure and boost short term oil extraction amounts.
Diplomatic cables leaked during the United States diplomatic cables leak
in 2011 revealed that Sadad al Husseini, the ex-head of Saudi Arabia's oil monopoly Aramco, warned the US that the oil reserves in Saudi Arabia might in fact be 40% lower than claimed (300bn barrels).
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
are the second largest claimed in the world, estimated to be 267 Goilbbl (Gbbl hereafter) including 2.5 Gbbl in the Saudi-Kuwaiti neutral zone
Saudi-Kuwaiti neutral zone
The Saudi–Kuwaiti neutral zone, also known as the Divided Zone, was an area of 5,770 km² between the borders of Saudi Arabia and Kuwait that was left undefined when the border was established by the Uqair Convention of December 2, 1922....
. These reserves were the largest in the world until Venezuela
Venezuela
Venezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
announced they had increased their proven reserves
Oil reserves in Venezuela
The proven oil reserves in Venezuela are claimed to be the largest in the world, according to an announcement in early 2011 by President Hugo Chavez and the Venezuelan government. The reported proven reserves reach , surpassing that of the previous long-term world leader, Saudi Arabia...
to 297 Gbbl in January 2011. The Saudi reserves are about one-fifth of the world's total conventional oil reserves, a large fraction of these reserves comes from a small number of very large oil fields, and past production amounts to 40% of the stated reserves.
Major oil fields
Although Saudi Arabia has around 100 major oil and gas fields, over half of its oil reserves are contained in only eight giant oil fields, including the Ghawar FieldGhawar Field
Ghawar is an oil field in Saudi Arabia. It is located in Al-Ahssa, Saudi Arabia. Measuring , it is by far the largest conventional oil field in the world. The field is entirely owned and operated by Saudi Aramco, the nationalized Saudi oil company...
, the biggest oil field in the world with an estimated 70 Gbbl of remaining reserves. 90% of Saudi Arabia's oil production comes from five fields and up to 60% of its production comes from the Ghawar field.
Production
Saudi Arabia produced 10.3 Moilbbl/d (Mbbl/d) in 1980, 10.6 Mbbl/d in 2006, and in the region of 9.2 Mbbl/d in 2008. Saudi Arabia maintains the world’s largest crude oil production capacity, estimated to be approx. 11 Mbbl/d at mid-year 2008 and announced plans to increase this capacity to 12.5 Mbbl/d by 2009 Cumulative production up to, and including, the year 2009 was 119.4 billion bbl. Using the stated number of 296 Gbbl, past production amounts to 40% of the stated reserves.After US President Bush
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
asked the Saudis to raise production on a visit to Saudi Arabia in January 2008, and they declined, Bush questioned whether they had the ability to raise production any more. In the summer of 2008, Saudi Arabia announced an increase in planned production of 500,000 barrels per day. However, there are experts who believe Saudi oil production has already peaked or will do so in the near future.
Data quality
Since 1982, the Saudis have withheld their well data and any detailed data on their reserves, giving outside experts no way to verify Saudi claims regarding the overall size of their reserves and output. This has caused some to question the current state of their oil fields. In a study discussed in Matthew Simmons'sMatthew Simmons
Matthew Roy Simmons was founder and chairman emeritus of Simmons & Company International, and was a prominent advocate of peak oil. Simmons was motivated by the 1973 energy crisis to create an investment banking firm catering to oil companies. In his previous capacity, he served as energy...
book Twilight in the Desert, 200 technical papers on Saudi reserves by the Society of Petroleum Engineers
Society of Petroleum Engineers
The Society of Petroleum Engineers is a not-for-profit professional organization whose mission is to collect, disseminate, and exchange technical knowledge concerning the exploration, development and production of oil and gas resources and related technologies for the public benefit and to provide...
were analyzed to reach the conclusion that Saudi Arabia's oil production faces near term decline, and that it will not be able to consistently produce more than 2004 levels. Simmons also argues that the Saudis may have irretrievably damaged their large oil fields by over-pumping salt water into the fields in an effort to maintain the fields' pressure and boost short term oil extraction amounts.
Diplomatic cables leaked during the United States diplomatic cables leak
United States diplomatic cables leak
The United States diplomatic cables leak, widely known as Cablegate, began in February 2010 when WikiLeaks—a non-profit organization that publishes submissions from anonymous whistleblowers—began releasing classified cables that had been sent to the U.S. State Department by 274 of its consulates,...
in 2011 revealed that Sadad al Husseini, the ex-head of Saudi Arabia's oil monopoly Aramco, warned the US that the oil reserves in Saudi Arabia might in fact be 40% lower than claimed (300bn barrels).