Riyadh’s Stance on Global Energy Assurance: A Collective Endeavor
The Saudi Energy Minister has underscored the universal obligation to achieve energy security on a global scale. Addressing attendees at the International Petroleum Technology Conference in Dhahran, he emphasized the Kingdom’s ongoing commitment to market equilibrium.
An impressive surplus in oil production capacity was highlighted by the minister, noting, We are ready to tweak up or downwards at any time, whatever the market necessity dictates,
reflecting the flexible response Saudi Arabia is prepared to offer depending on market demands.
In line with OPEC+ agreements, Saudi Arabia made the strategic decision to curtail oil production by half a million barrels daily in April 2023, a measure now extended until December 2024. Additionally, the Kingdom volunteered a further reduction of 1 million barrels per day in July, maintaining this stance through the end of the year 2023.
The energy minister pointed out that oil demand consistently outstrips certain forecasts, and their role is to remain vigilant, not complacent. He also touched upon the lexicon shift in energy transition discussions post-COP28, where the discourse has moved towards ‘transitioning’, a term championed by the Kingdom.
Exploring a diverse energy mix, Saudi Arabia is advancing solar energy initiatives, with tenders in the pipeline for approximately 30 gigawatts of solar power.
The 2023 edition of the IPTC, which started on February 12 and concluded on February 14, drew more than 20,000 energy specialists worldwide and showcased over 500 technical presentations.
Unity in Market Stability Essential, Saudi Minister Articulates
Earlier in January, the Kingdom’s energy minister highlighted the collaborative effort required for oil market stability, stating that it is not a solo mission for Saudi Arabia. In a video address to the Baker Hughes annual meeting, he elaborated that the health of the international oil market is a shared concern among all stakeholders.
He concluded by asserting the critical role of secure and reliable energy supply chains in supporting the world’s ongoing economic expansion.