OIL DEMAND WILL GROW
National oil giant Saudi Aramco is continuing to invest in oil and gas production capacity despite cost-cutting due to low oil prices, its chairman Khalid al-Falih said on Monday.
Aramco's plans starkly contrast with governments and oil firms outside the Gulf, which have been reducing capital spending sharply in response to financial pressures as crude prices drop to 12-year lows.
Saudi Arabia, the world's top oil exporter, is determined to protect or expand its market share when the balance between supply and demand eventually improves and prices recover.
"Our investments in capacity of oil and gas have not slowed down - we have been able to do a lot of cuts in spending by simply driving down costs," Aramco chairman Khalid al-Falih told a panel discussion at a business conference."
"Saudi Arabia is well documented to be the clear lowest cost producer," he told reporters later. "We have scale, capability, technologies that have allowed us to maintain our low cost."
He said global oil supply and demand would balance at a "moderate" price soon.
"Demand will grow, as it has already started in 2015, and there will be a period not far into the future (when) demand will catch up with supply," he said.
|November, 22, 11:35:00|
|November, 22, 11:30:00|
|November, 22, 11:25:00|
|November, 22, 11:20:00|
|November, 22, 11:15:00|
|November, 22, 11:10:00|
Nigerian National Petroleum Corporation (NNPC) and Chevron Nigeria Limited (CNL) have executed the second and final phase of an Alternative Financing Agreement that would increase crude oil production in the country by about 39,000 barrels per day.
OGJ - Maersk Drilling and Aker BP announced a drilling rig alliance based on a tripartite collaboration model that also includes service provider Halliburton Co.
REUTERS - Brent crude futures LCOc1, the international benchmark for oil prices, were at $62.56 per barrel at 0439 GMT, down 16 cents, or 0.3 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $56.59 a barrel, up 4 cents, or 0.1 percent, from their last settlement.
Rosneft as a member of Sakhalin-1 Consortium successfully completed drilling of the world's longest well from Orlan platform at Chaivo field in the Sea of Okhotsk. The length of the well with horizontal completion is 15000 m which currently is a world record. This is a supercomplex well with DDI (Directional drilling index) of 8.0 and 14,129 m stepout.