According to the Oil and Gas Journal, Saudi Arabia contains 261.9 billion barrels of proven oil reserves, around one-fourth of proven, conventional world oil reserves. Around two-thirds of Saudi reserves are considered light or extra light grades of oil, with the rest either medium or heavy. Although Saudi Arabia has around 80 oil and gas fields (and over 1,000 wells), more than half of its oil reserves are contained in only eight fields, including Ghawar (the worlds largest oil field, with estimated remaining reserves of 70 billion barrels) and Safaniya. Ghawars main producing structures are, from north to south: Ain Dar, Shedgum, Uthmaniyah, Hawiyah, and Haradh. Ghawar alone accounts for about half of Saudi Arabias total oil production capacity.Saudi Arabia is the worlds leading oil producer and exporter, and its location in the politically volatile Gulf region adds an element of concern for its major customers, including the United States. Saudi Arabia maintains crude oil production capacity of around 10.5-11.0 million bbl/d, and claims that it is easily capable of producing up to 15 million bbl/d in the future and maintaining that production level for 50 years. In June 2005, Saudi Aramcos senior vice president of gas operations, Khalid al-Falih, stated that Saudi Arabia would raise production capacity to more than 12 million bbl/d by 2009, and then possibly to 15 million bbl/d if the market situation justifies it. Falih added that by 2006, Saudi Arabia would have 90 drilling rigs in the Kingdom, more than double the number of rigs operating in 2004. One challenge for the Saudis in achieving this objective is that their existing fields sustain 5 percent-12 percent annual decline rates, meaning that the country needs around 500,000-1 million bbl/d in new capacity each year just to compensate. Aramco estimates that the average total depletion for Saudi oil fields is 28 percent, with the giant Ghawar field having produced 48 percent of its proved reserves. Aramco also claims that, if anything, Saudi oil reserves are underestimated, not overestimated. Some outside analysts, notably Matthew Simmons of Houston-based Simmons and Company International, have disputed Aramcos optimistic assessments of Saudi oil reserves and future production, pointing to -- among other things -- more rapid depletion rates and a higher water cut than the Saudis report.
For January-July 2005, EIA estimates that Saudi Arabia produced around 10.9 million bbl/d of total oil -- including crude oil, natural gas liquids, and "other liquids"oil, and also including half of the Saudi-Kuwaiti Divided Zones 610,000 bbl/d). This was up sharply from Saudi Arabias 8.5 million bbl/d of total oil production in 2002 (see graph). Currently, Saudi Arabia is estimated to be producing around 9.6 million bbl/d of crude oil, well in excess of its current quota level of 9.099 million bbl/d (effective July 1, 2005). In addition to crude oil, Saudi Arabia produces around 1.3 million bbl/d of natural gas liquids (NGLs) and "other liquids," not subject to OPEC quotas.
Saudi Arabia produces a range of crude oils, from heavy to super light. Of Saudi Arabias total oil production capacity, about 65 percent-70 percent is considered light gravity, with the rest either medium or heavy; the country is moving to reduce the share of the latter two grades. Lighter grades generally are produced onshore, while medium and heavy grades come mainly from offshore fields.
The Ghawar field is the main producer of 34o API Arabian Light crude, while Abqaiq (a super-giant field with 17 billion barrels of proven reserves) produces 37o API Arab Extra Light crude. Since 1994, the Hawtah Trend (also called the Najd fields), which includes the Hawtah field and smaller satellites (Nuayyim, Hazmiyah) south of Riyadh, has been producing around 200,000 bbl/d of 45o-50o API, 0.06 percent sulphur, Arab Super Light. Offshore production includes Arab Medium crude from the Zuluf (over 500,000 bbl/d capacity) and Marjan (270,000 bbl/d capacity) fields and Arab Heavy crude from the Safaniya field. Most Saudi oil production, except for "extra light" and "super light," is considered "sour," containing relatively high levels of sulfur.
Saudi Arabias long-term goal is to further develop its lighter crude reserves, including the Shaybah field, located in the remote Empty Quarter area bordering the United Arab Emirates. (In June 2005, the UAE said it wanted to amend a 1974 border pact which gave the Saudis rights to Shaybah, which lies 80 percent in Saudi territory and 20 percent in UAE). Shaybah contains an estimated 15.7 billion barrels (or higher) of premium grade 41.6o API sweet (nearly sulfur-free) Arab Extra Light crude oil, with production as of May 2005 at around 500,000 bbl/d. Overall, the Shaybah project cost around $2.5 billion, with production starting in July 1998. According to Oil Minister Naimi (October 1999), the development of Shaybah showed that "the cost of adding...capacity - that is, all the infrastructure, producing and transportation facilities - necessary to produce one additional barrel of oil per day in Saudi Arabia is, at most, $5,000 compared to between $10,000 and $20,000 in most areas of the world." Plans are to increase Shaybah output by as much as 300,000 bbl/d in the next few years. The Shaybah complex includes three gas/oil separation plants (GOSPs) and a 395-mile pipeline to connect the field to Abqaiq, Saudi Arabias closest gathering center, for blending with Arab Light crude (Berri and Abqaiq streams). In addition to oil, Shaybah has a large natural gas "cap" (associated gas), with estimated reserves of 25 trillion cubic feet (Tcf). Gas production of 880 million cubic feet per day (Mmcf/d) is reinjected, along with natural gas liquids (NGLs). A possible gas recovery project could be implemented within 5 or 6 years, potentially for use in petrochemical production.