He did so while helping to steer OPEC through a minefield of instability provided by the political travails of several member countries-including wars involving Iraq and Libya, and sanctions on Riyadh’s main strategic rival, Iran.
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Replacing al-Naimi appears to be political more than anything, since Saudi Arabia has announced plans to invest in other aspects of their economy, an effort led by deputy crown prince Mohammad bin Salman Al Saud.
In the wake of the cabinet reshuffle, al-Falih on Sunday attempted to calm fears regarding possible changes to Saudi Arabia’s longstanding oil-production policies.
Aramco also announced Tuesday that it expects a huge ship fix and shipbuilding complex that it is developing at Ras al-Khair on the kingdom’s east coast to be fully operational by 2021, chief executive Amin Nasser said on Tuesday.
The move comes amid speculation Saudia Arabia is looking to overhaul its energy strategy following the collapse in the oil price.
Which country takes the bait will be fascinating not just because of the numbers involved (Aramco is said to be worth $2.5 trillion ) but also because of weighty political alliances down the road.
He said demand for Saudi Aramco’s oil is increasing and the company is meeting that demand.
Saudi Aramco is likely to ramp up oil production to meet rising demand, at a time when global oil markets are already awash with crude.
These volumes are meant as a signal not just to Iran, but to Saudi Arabia’s other main rivals-the USA and Russia-that it is not only not prepared to cede market share, but that it intends to take more.
But as oil prices have plunged, al-Naimi has been unable to reach a deal with Organization of Petroleum Exporting Countries suppliers to pause production.
However, Al-Falih said he too will continue to prioritise sales over prices despite the slump in oil from $115 a barrel in mid-2014 to below $30 early this year.
Reuters quoted Nasser as saying that until that date, the maximum sustainable output capacity of Saudi Aramco stands at 12 million barrels per day.
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Another example is its huge ship fix and shipbuilding complex that it is developing at Ras al-Khair on the kingdom’s east coast to be fully operational by 2021, Nasser said. Allowing Saudi Arabia’s power struggle with Iran to politicize global oil prices also makes people nervous. His replacement, Khalid al-Falih, was up to now the head of the state oil company, Saudi Aramco, and is close to bin Salman.
