OIL MARKET: Saudi Arabia, Russia, Iraq to produce 38.9% of OPEC+ over 40 mb/d in 2024
By Eyo Nsima
The Organisation of Petroleum of Petroleum Exporting Countries, OPEC and its allies, popularly known as OPEC+, Sunday, resolved to produce over 40 million barrels per day, mb/d from January 2024.
Three nations – Saudi Arabia, Russia and Iraq – will produce 24.7 mb/d, representing 38.9 per cent of the total 40 mb/d output under the OPEC+ Declaration of Cooperation, DoC.
The breakdown indicated that Saudi Arabia, Russia and Iraq will produce 10.5 mb/d, 9.8 mb/d and 4.4 mb/d respectively.
This clearly illustrates the huge capacity which the three oil-rich countries command in the committee of oil and gas nations.
Saudi Arabia
According to OPEC, “The Middle Eastern Kingdom of Saudi Arabia straddles the Arabian Peninsula, bordered by Jordan, Kuwait and Iraq in the north and Oman and Yemen in the south. It is the 14th largest country in the world, covering around two million square kilometres, making it the second largest OPEC Member Country. Saudi Arabia has a population of around 35.5 million, more than seven million of whom live in the capital, Riyadh. Arabic is the official language.
“Saudi Arabia possesses around 17 per cent of the world’s proven petroleum reserves. Apart from petroleum, the Kingdom’s other natural resources include natural gas, iron ore, gold, and copper.
“The national currency is the riyal.
“The Sovereign is the Custodian of the Two Holy Mosques, HM King Salman Bin Abdulaziz Al-Saud. Saudi Arabia is a Founder Member of OPEC.
“Saudi Arabia is home to the world’s largest continuous sand desert – the Rub Al-Khali, or Empty Quarter.
“Oil was first struck in Saudi Arabia in March 1938, at a depth of 1,440 metres in the Dammam oilfield.”
RUSSIA
OPEC maintained that, “Russia has remained a major player in the petroleum industry throughout. It is now the world’s second-largest oil exporter and has the world’s eighth-largest oil reserves. It is also the world’s largest gas exporter and has the world’s largest gas reserves. And, as if this were not enough, it has the world’s second-largest coal reserves.
“Russia has the formidable task of realising the full potential of its massive energy resource base. This long drawn-out process has included the replacement of old, inefficient infrastructure, plant and equipment, and the integration of a new competitive work ethic. There are also issues that relate to the size and nature of domestic energy demand in Russia since these directly affect the petroleum resources which are available for export.”
IRAQ
OPEC also stated that, “Sharing borders with three other OPEC Member Countries – the Islamic Republic of Iran, Kuwait and Saudi Arabia – Iraq covers an area of around 438 thousand square kilometres. It has a population of about 41 million, one-fifth of which live in the capital, Baghdad. Most Iraqis speak Arabic, although Kurdish is also used, especially in the northern part of the country.
“Iraq attained its independence as a Kingdom in 1932. In 1958, a military coup d’état ended the monarchy, making Iraq a republic.
“Apart from petroleum, Iraq’s other natural resources include natural gas, phosphates and sulphur. Its national currency is the dinar. The country has a varied landscape, which includes areas of desert, mountains and fertile regions.
“The country is a Founder Member of OPEC.
“Baghdad was the largest multicultural city of the Middle Ages and was the centre of learning during the Islamic Golden Age.
“Iraq’s Kirkuk oilfield consists of three domes – Baba, Avanah and Khurmala. It was at the Baba dome that the country’s first productive oil well was drilled in 1927.”
