6 / 28
OAPEC Member Countries
6
Volume
44
Issue
7
Saudi Energy, Industry, and Mineral
Resources HE Eng. Khalid Al Falih said close
and continued cooperation between OPEC
and non-OPEC producers has contributed to
safeguarding the oil industry against one of the
hardest decline waves encompassing changes
in energy mix and demand levels.
In his speech at the 7th OPEC International
Seminar in Vienna, Al Falih pointed out that the
past 18 months have been difficult. There were
ups and downs, however, the end results were
good. He added “we managed to bring balance
back and saw investments flowing back. We
hope to continue in the same manner in the
coming years as the mission hasn’t finished
yet. We are looking for more.”
He underscored KSA’s endeavours as
being directed towards meeting all demand
needs and compensating for any shortage in
oil supplies. He clarified that the decision to
increase production is governed by a number
of technical and political factors, therefore,
the decision needs a thorough study as “we in
Saudi Arabia have huge reserves and are able
to meet any forecasted and urgent increase in
demand.” The Minister signalled that demand
would increase in the second half of 2018.
HE Al Falih said there will likely be a deficit
of 1.6 – 1.8 million barrels in the second half
of this year 2018 assuming that the main
production continues at May 2018 levels. That
will continue to drive inventories down. He
added that OPEC cannot accept this situation;
it will work on the deal in terms of supply levels
to ease consumer anxiety.
He stressed that OPEC is committed to its
responsibility towards the consumer and the
market, in a way that resembles the Saudi stance.
He explained that any excess in the oil market
is bad for both producers and consumers; “it is
through cooperation with oil producing countries
that we will not allow that to happen again.”
HE AL FALIH: WORLD LIKELY TO FACE INCREASE
IN DEMAND IN SECOND HALF OF 2018