Back toour markets

Saudi Arabia Overview

Saudi Arabia

in figures

Oil Reserves266.2 billion barrels

Oil Production12 million bopd

Gas Reserves8.0 tcm

Gas Production111.4 bcm

Saudi Arabia: Dominance and Diversification

As the second-largest crude oil producer and the largest oil exporter in the world, Saudi Arabia found itself at the heart of the storm when the oil price dropped in the summer of 2014. Historically, the country has often acted as a swing producer, adapting its production to either drive up or suppress the oil price. But feeling the threat of the US shale boom and growing competition from developing markets, the country kept up production this time around, producing 12 million bopd on average in 2015, showing it was willing to fight to maintain its market share. Finally, in late 2016, Saudi Arabia agreed with OPEC on a 1.2-million-bopd cut to its production, which stood at 10 million bopd as of October 2017. The country’s Ministry of Energy, Industry and Mineral Resources worked to extend the cuts through 2017, seeing a deal reached in May of that year.

Saudi Aramco began 2016 with a landmark IPO announcement, saying it could privatise some downstream subsidiaries and offer “an appropriate percentage” of its shares on the stock market. It was later revealed that Aramco would become a holding company, with publicly listed subsidiaries. Proceeds from the IPO, estimated to be in the range of USD 100 billion-150 billion, will be directed towards a sovereign wealth fund for strategic in-country investments. In the meanwhile, the company is keeping investment at a high level. In September 2016, it was announced that Aramco would be spending USD 334 billion between 2016 and 2025. The company will invest in infrastructure, maintenance, power plants, drilling projects, and the development of unconventional resources such as shale oil.

While Saudi Arabia has more than 100 different producing fields, eight of them alone are responsible for the majority of the country’s oil production. Most notable is the Ghawar field, which, with a production of 5.8 million bopd and estimated reserves of 60 billion-70 billion barrels of Arabian Light crude, is the world’s biggest oilfield. A second record belonging to Saudi Arabia’s oil industry is set by the Safaniya field, the world’s largest offshore oilfield. Safaniya is located north of Dammam, in the Gulf, and boasts a production of 1.2 million bopd. The field is estimated to hold reserves of up to 37 billion barrels. Saudi Arabia also holds the world’s sixth-largest natural gas reserves, after Iran, Russia, Qatar, Turkmenistan and the US. The country uses all gas produced and does not trade its gas. Recently, the government has shown interest in developing its natural gas resources to boost its petrochemical and power generation sectors. According to the National Transformation Programme 2020, a government programme launched in June 2016, Saudi Arabia is looking to increase efficiency while utilising hydrocarbons during power generation.

For a comprehensive view of Saudi Arabia’s market, see The Oil & Gas Year Saudi Arabia 2018.

Oil prices jump following attack on Saudi facilities
Saudi Arabia - September 16, 2019

Oil prices surged more than 10% on Monday in Asia after a drone attack on Saudi Arabia’s oil facilities eliminated 5.7 million…

Arabian Geophysical and Surveying Company
Saudi Arabia - May 01, 2019

Saad Saud Al Akeel, CEO of Arabian Geophysical and Surveying Company (ARGAS), talks to TOGY about the latest trends in the…

Taqa buys Schlumberger rigs in 4 markets
Saudi Arabia - April 29, 2019

Saudi Arabia’s Taqa will purchase a portion of Schlumberger’s Middle East drilling rigs business in a deal worth USD 415…

Aramco eyes Reliance stake purchase: report
Saudi Arabia - April 17, 2019

Saudi Aramco is in talks to purchase a stake in Indian refining and petrochemicals major Reliance Industries, international…

Saudi Arabia’s Onshore and Offshore Fields and Pipelines Map

Saudi Arabia maps

Saudi Arabia’s Onshore and Offshore Fields and Pipelines

Saudi Aramco to buy SABIC for $69 bln
Saudi Arabia - March 28, 2019

Saudi Basic Industries Corporation (SABIC) will merge with Saudi Aramco under a long-anticipated deal announced by the NOC on…

Saudi Arabia seeks $425 bln for infrastructure
Saudi Arabia - January 28, 2019

Saudi Arabia is looking to secure USD 425 billion in investments in the country’s infrastructure by 2030, international media…

Saudi Arabia - January 24, 2019

Mauro Longobardo, CEO of Arcelor Mittal Jubail Tubular Products, talks to TOGY about competition from Chinese players, why the company is increasing production and its…




  • Do you have a question for TOGY about oil and gas?
  • If we know, we’ll tell you.
  • If not, we’ll ask the experts in the field.