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OPEC Related
Information
     

Saudi Arabia’s oil production varies according the state of the market and guidelines set by the Organization of Petroleum Exporting Countries (OPEC).

Created in 1960,OPEC unifies petroleum policies among its member countries and ensures stability in international oil markets by eliminating fluctuations in prices.

As a founding member of OPEC and its largest producer, Saudi Arabia has a leading role in guiding the organization to promote cooperation in energy issues, often acting as OPEC’s principal moderating force.

 

 

Over the years, the Kingdom has helped prevent market crises that threatened to harm both oil producers and consumers.  For example, during the Gulf Crisis of 1990-91 global markets lost four million barrels per day of crude oil supplies from Iraq and Kuwait. Saudi Arabia immediately responded by increasing production and averted what could have been a disastrous shortfall in global supply.

The Kingdom made similar adjustments to its production during other times of turmoil that threatened the global oil supply, such as the market fluctuations of the late 1990s, the 2003 Iraq war, labor unrest in Venezuela, supply disruptions in Nigeria and conflicts between Russian oil giant Yukos and the Russian government.


 

 

Related Information: Energy

RecentNews:
 
07/14/2008   Cabinet welcomes King Abdullah’s call for interfaith dialogue
07/08/2008   King Abdullah approves program for privatizing SWCC
07/01/2008   King Abdullah: Saudi Arabia not responsible for high oil prices
06/24/2008   World Bank to work with Saudi Arabia on energy initiative


Other Documents:


Energy
More than a quarter of the world's proven oil reserves lie beneath the sands and offshore waters of Saudi Arabia. The discovery of these reserves and the building of the necessary facilities to make possible their use have made the Kingdom the world's largest exporter of oil and natural gas.

Oil
In 1933, Saudi Arabia's founder King Abdulaziz bin Abdelrahman Al-Saud granted the now-historic right to the Standard Oil Company of California (SOCAL) to prospect for oil in the Kingdom.
Refining
In the 1960s, Saudi Arabia began to build refineries for domestic and export production. Prior to that, the Kingdom had to send its crude oil to foreign refineries for processing and import refined products for its own use. The country rapidly expanded its refining capacity under the development plans in the 1970s.
Gas
Saudi Arabia has vast reserves of natural gas, including dissolved, associated and non-associated gases. Most of the natural gas produced is associated gas - light hydrocarbon gases such as ethane and propane produced in association with crude oil.
Minerals & Minings
As early as 1,000 BC, the inhabitants of the Arabian Peninsula extracted gold, silver and copper from the mine called Mahd Al-Dhahab (Cradle of Gold), located about 180 miles northeast of Jeddah.
Electricity
The five-year development plans have targeted the electrification of the country as a top priority.
Solar Energy
In keeping with its long-standing objective of exploring major renewable sources of energy, Saudi Arabia has undertaken extensive research on solar energy.



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