Saudi Arabia embraces U.S. shale production

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Saudi Arabia welcomes and encourages U.S. shale production rates, chief executive of Saudi Aramco told the Financial Times.

Khalid al-Falih, head of the kingdom’s national oil company, said the production revolution will reassure consumers about the reliability of oil supplies, and help ease fears about excessive reliance on the Middle East, reported the newspaper.

“Oil is going to be the fuel of choice, in terms of its overall performance, for an extended period of time, and we need to manage it, we need to invest in it,” said al-Falih.

According to the Financial Times, the shale oil boom has raised U.S. crude production by almost 50 percent since 2008, but Saudi Aramco –the holder of the world’s largest conventional oil reserves—believes that the U.S. production will not take away its market in the long term.

Last month (April), Saudi oil output rose to 9.4 million bpd, reported Arab News. Supply to the domestic and export markets slightly rose from 9.15m bpd in March to 9.2m bpd in April.

Sources familiar with Saudi oil policy said in late April that they expected external demand for Saudi crude to remain steady from March through June 2013, reported the newspaper.

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