CERAWeek '17: Energy minister says Saudi Arabia interested in promoting U.S. economic, E&P health

HOUSTON – During a plenary session at CERAWeek led by IHS Markit, Saudi Arabia’s Energy Minister Khalid A. Al-Falih said that his country has an interest in promoting the economic health of the U.S. economy and its E&P industry. Minister Falih said that the U.S. continues to be the bellwether for R&D and technology development/deployment, and to assist in the U.S. recovery will promote this trend.    

He commented that Saudi Arabia and its OPEC partners are committed to commodity price stability and working with other countries to establish a collaborative production framework, to accomplish these goals.  Aramco wants to invest in long development cycles, but the U.S. shale comeback creates a problem, due to its short ramp-up time.

During the downturn, Saudi Aramco has led by example, by holding its output well below its capacity to produce while continuing to invest heavily in developing new reserves, to ensure ample supply when demand strengthens.

HE Falih concluded by saying that the U.S. shale industry is showing “green shoots of a recovery,” and he is cautiously optimistic about the future.  The key to a balanced recovery will be to carefully manage how much “water” we put on the new growth.