Clear Risk of Slower Saudi Output Restart
There is clear risk of a slower restart of Saudi Arabian oil production despite the optimistic guidance by Saudi Aramco.
That’s according to Rystad Energy Chief Oil Market Analyst Bjornar Tonhaugen, who made the statement in a post published on Rystad’s website on Wednesday.
“In our view, there is a clear risk of a slower resumption towards full capacity,” Tonhaugen stated.
“Repairs to the damaged spheroids and stabilization towers involve, to our understanding, access to expertise and spare parts which would take time to procure,” he added.
Unless repairs happen much quicker than Rystad expects, the company estimates that the Abqaiq processing facility will only reach 90 percent capacity by mid-November, Tonhaugen revealed.
“The outage would then be reduced to 0.5 million barrels per day (MMbpd) for the month of November at 5.2 MMbpd production. For now, we expect production to remain slightly below full capacity for December,” the Rystad representative continued.
Saudi Aramco President and CEO Amin Nasser announced Tuesday that the company’s production capacity would be fully restored by the end of September.
On September 14, the company revealed that Saudi Aramco emergency crews contained fires at the company’s plants in Abqaiq and Khurais, “as a result of terrorist attacks with projectiles”. Saudi Aramco confirmed that these attacks resulted in a production suspension of 5.7 million barrels of crude oil per day.
To see analyst reaction on the attack, click here. To contact the author, email andreas.exarheas@rigzone.com
WHAT DO YOU THINK?
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.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension