The Change Mariner

Saudi Arabia Struggling To Meet Oil Demand

New York Times:

When visitors tour the headquarters of Saudi Arabia's oil empire -- a sleek glass building rising from the desert in Dhahran near the Persian Gulf -- they are reminded of its mission in a film projected on a giant screen. "We supply what the world demands every day," it declares.

For decades, that has largely been true. Ever since its rich reserves were discovered more than a half-century ago, Saudi Arabia has pumped the oil needed to keep pace with rising needs, becoming the mainstay of the global energy markets.

But the country's oil fields now are in decline, prompting industry and government officials to raise serious questions about whether the kingdom will be able to satisfy the world's thirst for oil in coming years.

Energy forecasts call for Saudi Arabia to almost double its output in the next decade and after. Oil executives and government officials in the United States and Saudi Arabia, however, say capacity will probably stall near current levels, potentially creating a significant gap in the global energy supply.

Posted by Timothy Fredel at February 23, 2004 10:05 PM | TrackBack
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