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Beyond 12.5: The implications of an increase in Saudi crude oil production capacity

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  • Krane, Jim

Abstract

A combination of factors is encouraging Saudi Arabia to consider raising crude oil production capacity beyond the current ceiling of 12.5 million barrels per day. The kingdom has managed to maintain a constant share of global crude oil markets, even as it copes with growing domestic demand for oil and a spate of investments in refineries, inside and outside the kingdom. Longer term, the threat of peak global oil demand – perhaps in response to climate change – enhances the attractions of a shorter time horizon to depletion. However, an increase in Saudi crude oil production would have consequences for markets and competing forms of energy, as well as for the kingdom's geopolitical stature. The wide range of potential outcomes suggests that a major capacity increase is a risky strategy.

Suggested Citation

  • Krane, Jim, 2017. "Beyond 12.5: The implications of an increase in Saudi crude oil production capacity," Energy Policy, Elsevier, vol. 110(C), pages 542-547.
    • Handle: RePEc:eee:enepol:v:110:y:2017:i:c:p:542-547
    DOI: 10.1016/j.enpol.2017.08.052
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    References listed on IDEAS

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    Cited by:

    1. Salaheddine Soummane, Frédéric Ghersi, and Franck Lecocq, 2022. "Structural Transformation Options of the Saudi Economy Under Constraint of Depressed World Oil Prices," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    2. Anser, Muhammad Khalid & Yousaf, Zahid & Nassani, Abdelmohsen A. & Vo, Xuan Vinh & Zaman, Khalid, 2020. "Evaluating ‘natural resource curse’ hypothesis under sustainable information technologies: A case study of Saudi Arabia," Resources Policy, Elsevier, vol. 68(C).
    3. Haider Mahmood & Maham Furqan, 2021. "Oil rents and greenhouse gas emissions: spatial analysis of Gulf Cooperation Council countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(4), pages 6215-6233, April.

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