Saudi Aramco CEO does not see US shale as threat – Oil | Platts News Article & Story

Saudi Aramco CEO does not see US shale as threat

Stavanger, Norway (Platts)–25Aug2014/126 pm EDT/1726 GMT

The CEO of Saudi Aramco said Monday that he did not see US shale as a threat, but rather as a stabilizing influence globally on the industry.

“First of all we have our own tremendous opportunities in shale and gas, … we are transferring that experience in the US in a very accelerated way in the Kingdom,” Khalid Al-Falih told the ONS conference in Stavanger, Norway.

“We will be actually delivering our first increment of shale within a couple of years to a major development in the Kingdom,” he said.

Al-Falih added that he saw US shale as benefiting the industry internationally.

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“I also think, globally, shale oil and gas is the best thing that has happened because it has kept prices within a band that allows consumers and producers to plan appropriately for investment and to meet rising energy demand,” he said.

“Without that share, the world would have been in a tight spot given the interruptions that have taken place in some other producing areas,” he said.

Asked whether he believed OPEC could be able to control the oil price going forward, Al-Falih said that the no single force controlled the price.

“This is a market driven business. It’s not OPEC, it’s not IEA, it’s not producers nor consumers that should get into the business of trying to control the market,” he said.

“Supply and demand will play the key role. OPEC has played a role, trying to step in … when shortages take place, which is I think something being appreciated globally,” Al-Falih said. “But prices are very much market driven.”

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