If necessary, Saudi Arabia has always asserted it could produce approximately 12 million barrels per day of crude. But a pump-at-will claim, which would mandate huge capital spending to use reserves, has never been explored.
People privy to the matter disclosed the kingdom may have maximized its current limits by producing about 10.7 million barrels a day this year, perhaps one of the reasons why the country largely fought for an agreement on output cut.
Sources said choices are more difficult now and the question is whether the kingdom would place huge investment in bolstering production or allocate it to other projects.
Market insiders and Saudi-based industry sources said Saudi cannot prolong historically high output for a long period of time, adding Saudi Aramco has never attempted 12 million barrels per day and would find it challenging to maintain the needed investments flowing given low prices.
The material has been provided by InstaForex Company – www.instaforex.com