Saudi Aramco Oil and Gas Production Hits Historic Levels

Abstract

Production Record Saudi Arabian state oil company Saudi Aramco released its annual report in July, noting that it produced more oil and gas last year than ever before, and also raised its technical capabilities to new heights as part of it 2020 strategy to be a fully integrated energy and chemicals company. The company’s annual production exceeded 3.4 billion bbl of oil, equal to an average of 9.5 million BOPD. “In 2012, we produced 3.479 billion bbl of oil, about one in every eight bbl of the world’s crude oil production and the most we have produced in a single year in our history,” Saudi Aramco said in its annual report. “During 2012 at Saudi Aramco, we responded to market conditions by producing crude oil at the highest level in our company’s history,” said Khalid Al-Falih, president and chief executive officer of Saudi Aramco. The company’s recoverable crude oil and condensate reserves have reached 260.2 billion bbl, while gas reserves reached 284.8 Tcf. “Our maximum daily sustainable crude oil production capacity remained at 12 million BOPD during the year. Our gas plants now have a gas processing capacity of 13.23 Bscf/D,” the report said. Gas production has also reached historic levels, as the company reported an 8.3% increase in output in 2012 com-pared with 2011 at about 3.924 Tcf/yr, the highest in Saudi Aramco’s history. The company also said that it produced 482 million bbl of natural gas liquids including 82 million bbl of condensates. Crude oil exports increased 100 million bbl in 2012 to 2.52 billion bbl, with 53.2% exported to the Asia Pacific region followed by 16.5% to the United States, 7.4% to the Mediterranean region, and 5% to Europe. In 2012, Saudi Aramco focused on exploring frontier areas in the Red Sea and complex reservoirs onshore and offshore. Discoveries included one oil field—Aslaf—and two gas fields—Sha’ur and Umm Ramil—bringing its total oil and gas field discoveries throughout its history to 116. Sha’ur was its first discovery in the marine portion of the Red Sea.