Saudi Arabia will maintain the same level of crude production capacity until 2020
Riyadh - Arab Today
Saudi Arabia will maintain the same level of crude production capacity until 2020 under the National Transformation Program (NTP).
Saudi Arabia will keep output capacity at 12.5 million barrels a day in 2020, according to a draft of the NTP.
The program calls for the country to produce 4 percent of its power from renewable energy sources in 2020 and cut electricity and water subsidies by SR200 billion ($53 billion).
“They’ll either have to cut crude exports or they’ll be pumping closer to full capacity,” Robin Mills, CEO at consultant Qamar Energy in Dubai, said in a Bloomberg report. Saudi Arabia’s production capacity is the biggest in the world, said Mills, a fellow at the Brookings Institution in Doha.
Deputy Crown Prince Mohammed bin Salman announced earlier this year a plan to overhaul the nation’s economy to make it less dependent on oil revenue amid a plunge in prices due to a global glut.
The plan includes selling shares in Saudi Aramco by the end of 2018 in an initial public offering that could value the company at about $2 trillion.
Saudi Arabia pumped 10.27 million barrels a day of oil in April, data compiled by Bloomberg show.
Output reached a record 10.57 million barrels a day in July, and the country has produced more than 10 million barrels in each of the last 14 months.
Saudi Arabia has the second-biggest crude reserves after Venezuela and more than double the deposits in Russia,