Did Aramco Just Open Pandora’s Box?

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The decades old discussion about Saudi crude oil reserves is far from resolved. The prospect repeats the previous official statements of reserves of 256.9 billion barrels of oil equivalent (sufficient for proved reserves life of 52 years), consisting of 201.4 billion barrels of crude oil and condensate, 25.4 billion barrels of NGLs and 185.7 trillion standard cubic feet of natural gas. At the same time, the prospect indicates that Aramco holds a total production capacity of 12 million bpd, as mentioned by CMS. The company’s total proven reserves life is now officially set at 54 years, based on 204.8 billion barrels of crude oil and condensates, 26 billion barrels of NGLs and 181 TCF of natural gas. Aramco’s position here dwarfs the Top 5 IOCs, such as Shell or ExxonMobil, as their average production life span of reserves is between 9-15 years. How much of Aramco’s proved reserves are able to be produced is still doubted by many, looking at corrosion, fouling and other issues reported. …

An excerpt from Oil Price