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OPEC deal set to hit Saudi gas production

Saudi Arabia is grappling with conflicting priorities – it needs to cut oil production to buoy prices but also wants to produce more gas to meet domestic demand Saudi Arabia is grappling with conflicting priorities – it needs to cut oil production to buoy prices but also wants to produce more gas to meet domestic demand.
By James Gavin 21 October 2016 Middle East & Africa / Exploration & Production 0 22480
OPEC proposed cutting oil production following a meeting in Algers in September. (OPEC)

OPEC’s oil production cut will be a major stumbling block to Saudi Arabia’s efforts to increase its gas output, most of which is associated with oilfields.

Saudi Arabia looks set to absorb the bulk of OPEC’s proposed cut, which was negotiated in Algiers last month. Of the non-OPEC oil producers, only Russia has said it is considering joining Saudi Arabia in freezing or reducting its oil output.

Saudi strategists have the long-term aims of increasing the country’s gas supply through unassociated fields to keep pace with domestic...