Last quote by Khalid al-Falih
Khalid al-Falih quotes
We know, from what we have seen in the last couple of years, that prices around the current level and below are not attracting enough investment. We know the level of decline, natural decline, that existing production is undergoing, and we know that demand is picking up at, you know, 1.2 to 1.5 million barrels a year.
It will be quite a diverse economy, with a diverse energy mix, as well, with a young workforce that is productive and contributing for their own well-being, and for Saudi Arabia, and indeed for our region and beyond.
So between increase in demand and natural decline, we need millions of barrels every year to be brought to the market, which requires massive investment.
Saudi Arabia in 10, 15 years will be quite, in a positive way, dramatically different than the Saudi Arabia of the past. It will be quite a diverse economy, with a diverse energy mix, as well, with a young workforce that is productive and contributing for their own well-being, and for Saudi Arabia, and indeed for our region and beyond.
It is not unique to our country to feel a certain level of anxiety (about tensions). But there is a lot of wisdom on both sides... I hope this anxiety will prove unfounded.
The two largest economies need to sort out their differences for the wellbeing of the global community.
Many countries are actually going the extra mile and cutting beyond what they've committed ... I am confident about the impact ... and I am very encouraged about those first two weeks.
My expectations (are)...that the rebalancing that started slowly in 2016 will have its full impact by the first half. Once we get close to the 5-year average of global stocks and inventories we will basically let our foot off the brakes and let the market do its thing.
We will connect to Africa to exchange non-fossil sources of energy.
There will be significant investment in nuclear energy.
We have been moving towards rebalancing the markets for some time. Even better, the pace of rebalancing will be accelerated by recent production agreements within OPEC and outside. I have confidence in these agreements to bring stability to the global markets.
I am confident that the combination of capping production by 25 countries and growth of demand will continue to balance and prices will respond accordingly.
The intent by all those who participated is to contribute to drawing down oil inventories that are excessive. And whether the reduction in that over-supply comes from deliberate intervention – like it is the case in Saudi Arabia – or by simply managing the decline in a way that makes them meet this agreement is left to the countries themselves.
We will know the exact numbers tomorrow but I am expecting about 10 to 11 countries to be on the final declaration with specific numbers.
We haven't finalized the deal … We need time to discuss and finalize the deal between OPEC member countries but as I said I am optimistic that we are in a position to enable us to finalize this framework.
We're hoping for 600,000 (barrels per day to be cut) from non-OPEC (countries) so that is going to be a substantial volume that will bring health back into the market.
We have agreed to a waiver from a cut to Iran in recognition of the impact of the sanctions on their economy and their industry.
We expect the level of demand to be encouraging in 2017, and the market will reach balance in 2017 even if there is no intervention by OPEC. But OPEC intervention aims to expedite this balance and the market recovery at a faster pace.
I'm still optimistic that the consensus reached in Algeria for capping production will translate, God willing, into caps on states' levels and fair and balanced cuts among countries.
If you think of economies like India and China and other energy intensive economies, I think the U.S. has a lot more flexibility to meet Paris with less sacrifices.
The U.S. already enjoys a competitive advantage in terms of its energy costs and I think, given what is happening in technology and renewables, especially in the US capabilities in that regard, I think the U.S. will find that provided everybody lives by Paris, the U.S. would retain if not improve its global competitive position.
It's not simply their duty, it's in their interest.
It is common that once presidents start governing then a lot more substance comes out.
By holding his ground, minister al-Naimi was not necessarily protecting Saudi Aramco, he was protecting the kingdom from having substantial value drained away in those transactions.
Their contribution to stabilisation could be as significant as those made by OPEC members.
Market forces are clearly working after a testing period of sub-$30 prices. The fundamentals are improving and the market is clearly balancing the supply and demand equation.
We want some clarity on where those producers are as we approach the meeting in November.
I can say that many countries from outside OPEC are willing to join ... we are not talking about support, we are talking about contribution.
I think, OPEC needs to make sure we don't crimp too tightly and create a shock to the market. Like I said, we want to be very responsible, if prices have dropped too low. That has an impact on investment, many companies are hurting. Many countries are hurting. That needs to be relieved. But at the same time we don't want to give the market the opposite signal and shock markets or prices because that could be harmful.
There is no offer, there is just consultation, trying to figure out where the market is going and to get to a consensus view. That will happen in due course, and the mood is generally very positive.
We are optimistic about the fundamentals. The market is trending in the right direction, slower than what we had hoped for a few months ago but the fundamentals are moving in the right direction.
Freezing production is one of the preferred possibilities.
But it does not have to happen specifically today.
Domestic demand usually goes up during the summer due to increasing use of electricity for cooling.
Rebalancing is already taking place. We are on track and prices should reflect that.
We are going to have a ministerial meeting of IEF in Algeria next month, and there is an opportunity for OPEC and major exporting non-OPEC ministers to meet and discuss the market situation, including any possible action that may be required to stabilize the market.
Demand will grow, as it has already started in 2015, and there will be a period not far into the future (when) demand will catch up with supply.
The economic value of Saudi Aramco as a company is what will be offered. Naturally, the primary field of Saudi Aramco's work is managing the reserves of Saudi Arabia. The reserves belong to the state but the company's ability to convert these reserves... into a financial value and at the same time for the company to have a portion of these profits will be part of the value of the company.
The price itself is irrational if you ask me.
If prices continue to be low, we will be able to withstand it for a long, long time. If there are short-term adjustments that need to be made, and if other producers are willing to collaborate, Saudi Arabia would be also willing to collaborate. But Saudi Arabia will not accept the role by itself of balancing the structural imbalance that is happening today.