Page 4 - NorthAmOil Week 28 2022

NorthAmOil COMMENTARY NorthAmOil

Biden returns from Mid-East

trip without oil agreement

Gulf leaders have rebuffed Western efforts to get them to produce more oil and Joe Biden’s
attempt is the latest, though it appears that despite the pageantry, little has changed.

US FOLLOWING his recent visit to the Middle also clean energy transition, and I think the visit
East, President Joe Biden returns to the US as should attract clean energy investments into the
the latest world leader to have made the trip and kingdom as a part of its Vision 2030.”
WHAT: come home without a commitment on increas- Meanwhile, it remains to be seen what Saudi
Biden challenged Saudi ing oil production. Arabia can actually do to expand oil produc-
Arabia on human rights While oil prices may fall during the second tion. “Riyadh has iterated that it is targeting a
while seeking to rebuild half of the year amid concerns about demand maximum production capacity of 13mn bpd by
bridges following and plans by the OPEC+ group to raise output, 2027, and that’s the maximum it can do essen-
the death of a Saudi any Western leader claiming to have influenced tially calling for investments in the upstream
journalist. the cost of a barrel through diplomacy would be sector to meet growing oil demand and keep
a stretch. prices reasonable over the next decades,” said
WHY: Biden attended the GCC+3 Summit in Jed- Alshammari.
The US President has dah with the leaders of Saudi Arabia, the UAE, State-led oil firm Saudi Aramco has been
compromised on one of Bahrain, Kuwait, Oman, Qatar, Iraq, Jordan working towards this target since 2020, with
his key promises in order and Egypt, with a key focus seeming to be the current maximum sustainable capacity (MSC)
to secure a promise on reduction of oil prices before the November sitting at just over 12mn bpd. However, there are
oil output, though so far, mid-terms. legitimate questions to be asked about just how
this looks to have come The importance of Biden’s trip clearly goes sustainable Saudi Arabia’s maxed out oil produc-
up short. beyond oil, but there were frustrations and tion is, with 11.1mn bpd having been exceeded
mixed messages relating to defence and “values”. just twice in history.
WHAT NEXT: Speaking on social media, Dr. Yousef Alsham- The most recent of which came in on April 2,
While Saudi Arabia, mari, CEO & Head of Oil Research at CMarkits, 2020 when it hit a record 12.2mn bpd amid an
the UAE and Iraq are said: “While there has been no clear indication ill-timed oil price war with Moscow. Even then,
all working to raise oil that the Kingdom will ramp up its production sources at Aramco have said that while several
capacity, they have yet to above what has already been agreed within the key fields including supergiants Berri, Man-
be drawn on production OPEC+ framework, 11.04mn barrels per day ifa, Marjan, Safaniyah and Zuluf “outproduced
above their own target [bpd] in August, prices are already coming down MSC”, large volumes of crude were released from
levels. due fears of recession and demand destruction.” Saudi storage to bolster the ‘production’ figure.
He added: “Energy has been a central topic The same week, the company set another record
on the Saudi and US agenda not only oil but by loading more than 18.8mn barrels of crude on

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