Saudi Arabia’s Amy Company unveiled its first profit data since nationalization nearly 40 years ago Monday, unveiling the mystery of its large oil fields, according to World Oil in London. The company’s bond prospectus shows that Ghawar’s daily capacity cap is 3.8 million barrels, far below the market consensus of more than 5 million barrels a day.
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The U.S. Energy Information Agency is a government agency that is often used as a benchmark in the oil market to provide statistical information. In 2004, Saudi Arabia and the United States said in a Washington report that the oil field produced more than 5 million barrels a day and has been doing so for at least the past 10 years.
Ghawar’s new maximum production means that during the Permian period, according to government data, the country produced 4.1 million barrels a day last month, making it the world’s largest oil basin. This correlation is not accurate, that is, Saudi oil field is a conventional reservoir, while Permian is an unconventional shale formation, but it shows the change of market power balance.
Safaniyah Oilfield, founded in 1951, is still the largest offshore oil field in the world with a daily production capacity of 1.3 million barrels. Saudi Arabia and the United States operate a total of 101 oil fields.
Saudi Arabia and the United States have a maximum capacity of 12 million barrels per day, as Riyadh has said for many years. The so-called “neutral zone” that Saudi Arabia shares with Kuwait can also produce 500,000 barrels a day.
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Although the prospectus confirms the total maximum productivity, the distribution of productivity among oilfields is different from the market’s previous expectations. As a policy, Saudi Arabia maintains its daily oil production at about 1 million barrels to 2 million barrels, only during wars, supply disruptions in other areas or exceptionally strong demand.
Saudi Ami also disclosed reserves in the top five oilfields, showing that some of them have shorter life expectancy than previously expected. Taking Ghawar as an example, its remaining oil reserves are 482,000 barrels, which will last for 34 years in terms of maximum production. Nevertheless, over time, enterprises can often increase reserves by deploying new technologies or technologies.
Saudi oil reserves are enough to sustain production for another 52 years, with a maximum capacity of 12 million barrels per day.
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