SAUDI ARABIA. Saudi Arabia can meet any future world oil shortages thanks to massive investment, and its rising gas output will mean crude exports will not be affected by booming domestic energy demand, Oil Minister Ali al-Naimi said on Monday.
Growing tension between Iran and the West over the Islamic Republic’s nuclear programme has led to fears of a disruption in oil supplies from the Middle East Gulf.
The United States and European Union have raised pressure on Iran with sanctions and a ban on Iranian oil, while Tehran has said it may cut off supplies to some unspecified countries.
Saudi Arabia is best placed to make up for any shortfall in oil supply.
“I would like to state for the record, here in London, that the kingdom will continue to be a reliable, steady and dependable supplier of energy to the world,” Naimi told an oil conference.
He dismissed concerns that demand from within Saudi Arabia would limit the amount of oil available for export.
“Saudi Arabia’s domestic growth will not impact on exports now or in the future – of this I am very confident,” he said.
The world’s top crude exporter is already burning more than 10 percent of its output in power plants on hot summer days, and fuel subsidies are exacerbating a demand boom that is increasing consumption of the world’s largest oil reserves.
Official data shows Saudi oil consumption rose by more than 5 percent a year between 2003 and 2010 to an average of 2.4 million barrels per day (bpd) in 2010.
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