04/10/2015 05:39 AST
The Kingdom’s recent moves in the oil industry are sending a strong message to the world about its commitment to preserving its market share, a leading Saudi analyst said on Friday.
“Saudi Arabia wants to assure the world and oil imported countries toward its commitment to the stability of the oil market,” said Sami A. Al-Nwaisir, chairman of the board of Al-Sami Holding Group.
He was commenting on Petroleum and Mineral Resources Minister Ali Al-Naimi’s remarks in Istanbul on Friday that Saudi Arabia is continuing with its investments in the oil and gas industry as well as solar energy despite the current drop in oil prices.
“This is a strong message to the world from Saudi Arabia as being market leader in producing oil which currently stands around 8.1 percent of the world oil supply and will in the future continue its policy of preserving the market share,” said Al-Nwaisir.
Speaking at the G-20 Energy Ministers’ meeting, Minister Al-Naimi also emphasized the importance of investments in science, research and technology to make fossil energy sources cleaner and more appropriate to the requirements of the environment, bringing more happiness and prosperity to the future generations.
Saudi Arabia is a long-term strategic producer of oil and Al-Naimi’s comments reflect this position, said John Sfakianakis, Middle East director at Ashmore Group. Saudi Arabia has always acted responsibly as a producer irrespective of the direction of oil, Sfakianakis told Arab News.
Many oil majors such as Shell have decided to reduce their exploration but Saudi Arabia is continuing its investments. “There will be a time the world would be mindful of Saudi Arabia’s investment commitments,” he added.?? But he said: “The G-20 in itself can do less to stabilize oil prices but it relies on countries like Saudi Arabia to continue playing their vital role in global oil markets.”
In a related development, G-20 member Russia said on Friday that it was pumping a record high level of crude in the post-Soviet era.
Speaking in Istanbul, Al-Naimi also said that Saudi Arabia’s investments should continue in exploration, production, refining as well as other alternative sources such as solar energy.
“Since the 1970s this industry has been experiencing sharp fluctuations in prices — up and down — which have impacted investments in the field of oil and energy, and its continuity,” Al-Naimi said.
“This volatile situation is not in the interest of the producing and consuming countries, and the G-20 countries can contribute to the stability of the market,” he added.
The world needs clean, continuous and available energy now and for future generations, he was quoted as saying news agencies.
Al-Naimi met with his US, Russian and Indonesian counterparts in Istanbul, where they discussed bilateral relations in the field of petroleum and protecting the environment, SPA reported.
Al-Naimi’s remarks show the leadership’s commitment toward renewable energy, said Basil Al-Ghalayini, CEO of BMG Financial Group.
The CEO said: “Although we are still behind neighboring countries in terms of legislation, Al-Naimi’s remarks give fresh hopes that the government will support and endorse the private sector to invest in renewable energy sources.”
Brent, the global oil benchmark, was up 30 cents, or 0.6 percent, at $47.99 a barrel by 1719 GMT) on Friday. US crude was up 60 cents, or 1.3 percent, at $45.34.
Arab News
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