During the World Energy Congress in Montreal, the President of the Saudi Aramco oil company, Mr. Khaled Al-Faleh, announced the giant Saudi company's plans to increase its oil reserves by 40 percent, over time. This would no doubt reassure the world and oil consuming countries. At the end of 2009, the confirmed crude oil reserves of the Saudi company were 260.1 billion barrels, of which approximately 110 billion barrels have been extracted since the start of oil production in Saudi Arabia in 1938. This important Saudi announcement contradicts the theory prevailing among some Western circles, which often predict that oil reserves will be depleted and call for the rapid development of alternatives before that happens – in order to reduce the West's reliance on Middle Eastern oil. The giant oil producing countries such as Saudi Arabia, Iraq and other major countries in OPEC will continue to be major players when it comes to supplying crude oil to the Western and Eastern worlds. However, the announcement by Mr. Khaled Al-Faleh also indicates that there is another factor, which is that the investments that the company needs in order to increase its reserves require an acceptable price level for both producing and consuming countries. Mr. Al-Faleh gave an example of an investment worth hundreds of millions of dollars in a project that is a part of the development of the Ghawar field in Saudi Arabia, and said: Aramco is preparing for oil exploration in the Red Sea, and deep water drilling will begin there in 2012. This means that this key state in OPEC that currently produces more than 8 million barrels per day of crude oil, and which possesses an untapped production capacity of 4 million barrels per day, is carrying out the needed investments in order for Saudi Arabia to continue to be a primary supplier and player in the global oil markets. This also means that Saudi Arabia places great importance on securing the stability of these markets, and of course, the stability of oil prices at levels that are suitable to both consumers and producers. Recently, fluctuations in oil prices vanished somewhat, preventing financial investors from speculation in oil markets because price fluctuations suit them. Also recently, with oil prices stabilizing at the 70-80 dollar price range, OPEC's responsibility vis-à-vis the equilibrium in oil markets increased. This is because OPEC's influence on oil prices is now greater than it used be when the volatility in prices took them from 40 dollars to 140 dollars per barrel as a result of speculation by investors dealing in securities. Hence, OPEC can at present continue to monitor supply and demand in order to manage supply, as it has been doing for nearly a decade now, all with a view to avert deterioration in prices in the markets that may hinder investment projects in the oil sector. However, there is some uncertainty that is complicating the task for OPEC, one that involves the actual confirmed demand for oil in consuming countries. For instance, the studies published by the International Energy Agency and OPEC are often reconsidered and adjusted. But as long as oil prices are currently at acceptable levels ranging between 72 and 80 dollars per barrel, there is no concern here. However, the bet is to continue seeing stable prices at acceptable levels, in order for OPEC to provide the world with its oil needs over the future decades.
