Top oil exporter Saudi Arabia vowed on Wednesday to maintain at least 1.5 million barrels a day of spare production capacity to guarantee its role as trustworthy supplier to the world.
To fulfil that aim, the kingdom sped through its $850 million Haradh oilfield project, now pumping full flow at 300,000 barrels per day (bpd). Saudi Oil Minister Ali al-Naimi, speaking after the official opening ceremony, said new oil from Haradh - the biggest single boost to Opec supplies this year - has raised Saudi output capacity to 11.3 million bpd.
Riyadh is now pumping 9.5 million bpd into the 85 million bpd world oil market.
"The aim of the kingdom is to be a trustworthy supplier. We want global stability," Naimi told reporters.
"Part of this commitment is to maintain...not less than 1.5 million barrels per day of surplus production capacity to meet growing demand or to cover unexpected shortfalls in supply."
Saudi Arabia, Opec's leading producer, holds nearly all the world's spare capacity of close to two million bpd. Consumer governments have piled pressure on major producers to inflate the global supply cushion, stretched thin by explosive demand growth in Asia and the United States that sparked a four-year rally and pushed oil above $60.
Riyadh's response has been to embark on a $50 billion drive to expand production and refining. A trio of new oilfield projects will allow Riyadh to pump 12.5 million by 2009.
The Saudi oil minister saw no let-up in increasing consumption despite the historically high cost of fuel. "Price levels are not harming economic growth...From now to 2030, demand on oil is expected to grow by 50 percent, therefore Saudi Arabia started lifting its production capacity," he said.
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