Riyadh, Saudi Arabia — Saudi Arabia’s oil minister said Tuesday that Saudi Arabia will increase the amount of oil exports per year from $500 million to $1 billion by 2022 to cope with the severe shortages that hit the country in 2015-16.
Saudi Arabia is in the midst of a severe drought.
In an interview with Al Arabiya TV, Crown Prince Mohammed bin Salman said the government plans to increase the output per barrel by 500 million barrels per day (bpd) and increase the production of crude by 5% per year.
“We will increase our oil exports from $1.5 billion per year to $2.1 billion per day,” Mohammed said.
“We will double the amount that we will export per year and we will increase production to 5% of the total amount of the country’s oil exports.”
The country has been in a chronic oil shortage since the beginning of this year, when Saudi Arabia cut its production to keep up with global demand.
Since then, prices have plunged and imports have continued to surge.
At the beginning, the Saudi Arabian government estimated that Saudi oil output would peak at 1.8 million bpd in 2018 and then fall back to 1.5 million bd in 2020, but production was expected to remain relatively high.
During its first year of the drought, Saudi officials cut production to below the threshold for production, which was set by Saudi Arabia in 2015.
However, oil output continued to grow at the beginning and Saudi Arabia began exporting oil again in late November, when it announced it had increased exports to 5.3 million bp, up from 4.5 mbpd.
Saudi oil output peaked at 1 million bps in 2018.
The Saudi government’s plan to increase oil exports is expected to be a key element of its economic and social policies, as the country faces serious economic problems due to the ongoing drought and the economic impact of the global economic crisis.
Mohammed said that the government is working to raise the production levels and boost the production rate from 1.1 mbps to 1 mbp.
The plan was announced by the Crown Prince, who is also the deputy head of the national oil company and the head of Saudi Aramco.
Earlier this month, Saudi Aramico said it would increase its exports to 4.4 million bph and increase production from 4 mbpc to 5 mpc.
According to Mohammed, the government’s plans to boost oil exports are a key part of the government plan to tackle the drought.
“The government is using this as a springboard to increase exports,” he said.
Last month, a Saudi-based Saudi newspaper, Al Arabiyas, said that oil output in Saudi Arabia was at a record high in October.
Despite the sharp drop in oil prices since March, the country still plans to export 1.6 million bpc of its total production in 2018, the paper said.
The government has also increased the amount it plans to sell on the market from about 2.7 million bnp to 2.9 million bn.
Aramco, Saudi’s state-owned oil company, has also announced plans to raise its oil exports to 6 million bpm from 5.5m bpm.
It also said it expects to sell about 5.1 million bhp of oil per day on the world market this year and hopes to sell more than 10 million bhps in 2019.