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Saudi oil production in 2020 is the lowest in 10 years

Saudi oil production

Saudi oil production in 2020 was 6.4% lower than in 2019 – the lowest rate in 10 years.

Saudi Energy Ministry data said that oil production reached 9.2 million b/d in 2020. The number was 9.8 million in 2010.

Oil production decreased by 0.6 million b/d between the past two years.

Saudi oil

The Ministry of Energy said that Saudi oil production during 2020 is the lowest in ten years where in 2010, they recorded 8.2 million b/d.

Production decline comes as a result of its commitment to the Organization of Petroleum Exporting Countries (OPEC) agreement to reduce production.

Cutting oil production aims to restore stability to the oil markets affected by the pandemic during the past year.

In a historic agreement, OPEC and independent producers outside the organization, led by Russia, committed themselves to cut oil production, starting from the beginning of last May, by 9.7 million b/d for two months.

OPEC then agreed to reduce production to 8 million b/d from July until the end of 2020 to ensure stability.

Production cut

Usually, Saudi Arabia reduces production by more than its share to ensure market stability. The kingdom also aims to preserve its leading role in maintaining its balance.

OPEC production decreased by 12.6% by 2 million b/ d during 2020, according to the organization’s secondary sources.

Despite the Kingdom’s commitment to reduce oil production, its share of OPEC production increased to 35.8% during 2020. The percentage was 33.4% in 2019, 32.4% in 2018, and 31.1% in 2017.

This increase the kingdom rose production to a record level of more than 12 million b/d, after Russia refused to reduce production with the start of the COVID-19.

The average daily Saudi oil production during 2020 was about 9.2 million b/d, while the whole OPEC production is about 25.6 million b/d.

The kingdom’s average daily oil production during 2019 was about 9.8 million b d, compared to 29.3 million for the whole OPEC production.

In 2018, Saudi production was about 10.31 million b/d, while OPEC was about 31.86 million b/d

Saudi oil production doubled

Saudi oil production doubled nearly six times and rose by 460% during the period from 1962 to 2020.

The average daily production in 1962 was about 1.64 million barrels. Ten years later, after 1962, Saudi production reached 6.02 million b/d in 1972.

It then exceeded 7 million b/d in 1973. Then, the number exceeded 8 million the following year, reaching 8.48 million b/d in 1974.

Two years later, Saudi Arabia’s production reached 9.20 million b/d in 1977.

Since then, until the end of 2014, production did not reach ten million b/day as an average annual production. However, in 2015 production reached 10.19 million b/d.

In 2016, Saudi Arabia recorded a record annual level of production at 10.46 million b/d. Production subsequently decreased to 9.96 million b/d in 2017 due to commitment to the OPEC agreement to reduce production to restore stability to the oil market.

Saudi oil production increased again in 2018 at 10.32 million b/d, while it declined to 9.81 million b/d in 2019, and then to 9.2 million b/d in 2020.

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