Saudi Arabia's Oil Minister: Production Cuts in Any Nation Unlikely

Saudi Arabia's Oil Minister: Production Cuts in Any Nation Unlikely
Saudi Arabia’s Ali Al–Naimi tells IHS CERAWeek audience that the nation isn’t chasing market demand, simply wants to satisfy customer demand.

As thunder rumbled outside, Saudi Arabia’s Petroleum Minister Ali Al-Naimi insisted to an IHS CERAWeek 2016 audience that the oil giant isn’t chasing market share. Rather, Saudi Arabia wants to work cooperatively with all oil-producing nations to freeze production and let demand catch up.

“As an industry, we have more that unites us rather than divides us,” he said.

But following the November 2014 meeting of the Organization of Petroleum Exporting Countries (OPEC) when some of those nations were clamoring for a cut in OPEC production to arrest, the fall didn’t gain traction.

“The oil market is much bigger than just OPEC,” Al-Naimi said. “We tried hard to bring everyone together, OPEC and non-OPEC, to seek consensus. But there was no appetite for sharing the burden. So we left it to the market as the most efficient way to rebalance supply and demand. It was – it is – a simple case of letting the market work.”

And demand is still strong, he said. In the long term, that demand will grow. Consequently, Al-Naimi said, he welcomes new sources of oil – including U.S. shale, contrary to some perceptions.

“We have not declared war on shale or on production from any given country or company,” he explained. “We are doing what every other industry representative in this room is doing. We are responding to challenging market conditions and seeking the best possible outcome in a highly competitive environment.”

An award-winning journalist, Deon has reported on energy, business and politics for almost 20 years. Email Deon at


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


Our Privacy Pledge

More from this Author
Deon Daugherty
Senior Editor | Rigzone
 -  Former US Senator: Renewables Are Not ... (Oct 26)
 -  BLOG: Challenging Attitudes toward Sex... (Oct 25)
 -  Energy IPO Pace Picks Up (Oct 20)
 -  BLOG: US Sits on the Sidelines for Ira... (Oct 19)
 -  DUCs Could Boost US Production by 250K... (Oct 19)

Most Popular Articles

From the Career Center
Jobs that may interest you
Safety and Environmental Management System Specialist (SEMS)
Expertise: Environmental, Safety & Training|Regulatory Compliance|Safety Engineering
Location: Houston, TX
Manager - Financial Reporting
Expertise: Accounting|Financial Analyst
Location: Houston, TX
JIB Supervisor
Expertise: Accounting
Location: Houston, TX
search for more jobs

Brent Crude Oil : $49.98/BBL 1.59%
Light Crude Oil : $49.18/BBL 1.56%
Natural Gas : $2.73/MMBtu 1.44%
Updated in last 24 hours