Low Gas Price Dogs Saudi Expansion

摘要

Saudi Aramco is out to prove that natural gas can help avert the kingdom's looming energy crunch, but the state giant's ambitious plan hinges on discovering and developing reserves whose costs far exceed the low, prevailing gas offtake price. Exploration last decade turned up three nonassociated gas fields - Karan, Arabiyah and Hasbah - that should add 4.3 billion cubic feet per day (44 billion cubic meters per year) to Saudi Arabia's current output of just under 10 Bcf/d by mid-2014 (WGI Feb.8'12). Aramco last week talked up its next stage of exploration and development, explaining how it intends to bring enough gas on stream after 2014 to help meet exploding power demand - and reduce oil-fired generation, freeing up more oil for export - by focusing on the Red Sea in the west, tight reservoirs in the Empty Quarter near the border with the United Arab Emirates, and shale formations in the north.