Saudi Aramco – the world’s largest crude oil producer – increased output to an all-time high last year, while keeping its reserves unchanged as the kingdom battles for market share.
Saudi Aramco produced 10.2mn barrels a day of crude in 2015, up from 9.5mn in 2014, according to an annual review posted on its website.
Natural gas output rose to 11.6bn standard cubic feet a day from 11.3bn. The company discovered three oil deposits last year, the same as in 2014, while gas field discoveries declined to two from five.
Expanding oil and gas supplies to meet the needs of domestic and international markets is at the core of Saudi Aramco’s business, and in 2015 the company delivered on its commitments, reaching record levels of oil production and gas processing, chairman Khalid Al-Falih said in the review.
Saudi Arabia’s rising production, along with increased output from shale plays in the US last year, exacerbated a global supply glut that drove down benchmark prices by more than 30% in 2015.
OPEC, led by Saudi Arabia, chose in November 2014 to keep pumping crude to protect its share of the market rather than cutting output to boost prices.
Last month, the Organisation of Petroleum Exporting Countries and other major producers including Russia failed to reach an agreement over a proposal to freeze output after Saudi Arabia insisted that it couldn’t sign up to a deal without the participation of Iran, which has pledged to boost its own oil production to pre-sanctions levels before considering a cap.
Aramco’s oil reserves were unchanged at 261.1bn barrels, while those of gas increased to 297.6tn standard cubic feet from 294tn. The company said it maintains an oil production capacity of 12mn barrels a day.
