MOSCOW (MRC) -- Saudi Arabia, the world's largest exporter of crude oil, has unveiled its intentions to remain a world energy powerhouse for the foreseeable future, partly by exploiting new technology which has unlocked vast quantities of oil and natural gas in North America, informed Hydrocarbonprocessing.
Saudi Arabia will push ahead this year with exploratory drilling of shale and other unconventional gas reserves which could be twice the size of its conventional gas reserves, which total 286 trillion cubic feet, Minister of Oil Ali al-Naimi said.
Exploiting unconventional and renewable energy will allow Saudi Arabia to meet rising domestic demand while maintaining crude-oil exports, add Mr. al-Naimi.
"This year alone we are going to test seven wells for shale. We have rough estimates of 600 trillion cubic feet of unconventional shale gas. The potential is very huge and we plan to exploit it," he said during a Credit Suisse conference.
Mr. al-Naimi didn't offer a forecast of how quickly Saudi Arabia might achieve commercial production of shale gas or shale oil, or describe how it will supply the large amounts of water used in hydraulic fracturing, or "fracking," the process used to extract oil and gas from shale.
Saudi Arabia is known more for its massive crude-oil exports than its modest gas output, and so far it hasn't managed to increase gas production enough to replace oil as feedstock in planned petrochemical or electricity-generating projects.
Natural gas output from state giant Saudi Arabian Oil Co., or Aramco, averaged 9.9 billion cubic feet/day in 2011, up from 9.4 billion cubic feet/day in 2010. Aramco CEO Khalid al-Falih said in December that the company plans to drill seven natural gas exploration wells in deep and shallow water in the Red Sea, off the coast of the northwestern city of Tabuk.
As MRC wrote earlier, in late 2012, Saudi Basic Industries Corp. (SABIC), the world's largest petrochemical maker,
unveiled its plans to invest in companies in the U.S and elsewhere that have technology to turn shale gas into chemical products.
The growth in U.S. shale-gas exploration and production has lowered domestic gas prices and enables producers there to use gas as feedstock. That has put pressure on petrochemical producers in Saudi Arabia who get gas for a government- subsidized price of USD0.75 per million British thermal units.
MRC