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Saudi Arabia Says OPEC+ Is Powerless to Ease Natural-Gas Crisis


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© Bloomberg. Flow control valves on pipes at the Hawiyah Natural Gas Liquids Recovery Plant, operated by Saudi Aramco, in Hawiyah, Saudi Arabia, on Monday, June 28, 2021. The Hawiyah Natural Gas Liquids Recovery Plant is designed to process 4.0 billion standard cubic feet per day of sweet gas as pilot project for Carbon Capture Technology (CCUS) to prove the possibility of capturing C02 and lowering emissions from such facilities.

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(Bloomberg) — Saudi Arabia said any extra oil from the OPEC+ cartel would do little to bring down surging natural-gas prices.

“We see our role as extremely limited,” Saudi Energy Minister Prince Abdulaziz bin Salman said during the CERAWeek India Energy Forum on Wednesday. “The issue is not the availability of . Even if we made it available in tons and tons, who’s going to burn it? Who is in need of it? And are they in need of crude or in need, for example, of gas?”

and coal futures have soared to record highs in recent weeks amid shortages of the fuels across much of Europe and Asia. Oil has also risen as some power producers switch to crude, but it’s been less volatile, thanks in part to OPEC+ committing to steady production increases.

Prince Abdulaziz said oil demand may rise by 500,000 to 600,000 barrels a day if the northern hemisphere’s winter is colder than normal. That’s roughly 0.5% of global consumption.

Any further boost to demand may be limited because many gas-fired generators cannot switch easily to oil, which is also a far dirtier fuel.

The Organization of Petroleum Exporting Countries and its allies — a 23-nation group led by Saudi Arabia and Russia — have pledged to raise daily output by 400,000 barrels each month. Some major consumers, including the U.S. and Japan, have called on exporters to do more to lower oil prices, which are up around 65% this year to over $80 a barrel.

©2021 Bloomberg L.P.

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