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Saudi Aramco Likely to Step Up Production…WSJ

You are here: Home / Uncategorized / Saudi Aramco Likely to Step Up Production…WSJ

May 10, 2016 by Jim Colburn Leave a Comment

From the Wall Street Journal (http://www.wsj.com/articles/aramco-aiming-to-double-gas-production-in-10-years-1462864819):

“Mr. Nasser’s comments suggest the kingdom’s oil company isn’t changing course. Saudi Arabia’s output tends to increase in the summer to deal with rising air-conditioner use when temperatures in the kingdom reach scorching levels, but Mr. Nasser said Aramco would pump more to meet demand elsewhere, particularly in the U.S. and India.”

And, expect more expansion in gas production and refining capacity:

“Saudi Arabia is also looking to increase its production of natural gas, with plans to nearly double its output in 10 years, he said. Earlier this year, Mr. Nasser had said Aramco wanted to raise its gas output to 23 billion standard cubic feet a day from about 12 billion cubic feet.

Saudi Aramco also plans to increase its refining capacity to eight million to 10 million barrels a day from its current capacity of about 5.4 million barrels a day. The expansion is part of Aramco’s plan to be the world’s leading energy-chemicals company by 2020 and represents the future of its fossil-fuels business.”

 

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Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

 


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