Boosting our Market Share
One of the main objectives of the Kingdom's petroleum policy is to achieve continuous international cooperation, and to create an ideal climate of dialogue seeking the stability of the petroleum market. This is achieved through close cooperation with other producing OPEC and non-OPEC countries, to ensure sufficient quantities of oil in world markets at price levels ensuring the interests of producers and consumers, and cooperation with those countries to avoid a surplus that leads to price collapse and affects the balance of supply and demand.
Therefore, the Kingdom, during the OPEC meetings, and the meetings with the allies, focused on the achievement of this goal, and endured greatly the abuses of many producing countries that produce above their specified levels, turned a blind eye to many of these abuses, and reduced its production share to levels less than specified and agreed upon to absorb these abuses. This is because the Kingdom aims to achieve stability in the oil market, and cause it to avoid sharp fluctuations in prices, to achieve its moderate policy that takes into account the interests of all parties.
During the last meeting of OPEC, the Kingdom sought to achieve cooperation with Russia, as the largest non-OPEC producing country, and to make new cuts due to the low demand for oil due to the economic consequences of the global outbreak of the Corona virus, but did not find any response. The outcome of the OPEC's meeting was announcing the liberalization of all restrictions on the production of all countries, a matter which frustrated the meeting states, especially the Kingdom, which could not stand idly by, for a part of its market shares going to other competitors seeking no cooperation. Therefore, Minister of Energy, Prince Abdulaziz Bin Salman responded to the Russian position saying, "Every oil producer should show their ability to compete, maintain their share and strengthen it in a free market."
In light of these circumstances and their persistence, and the rejection of major producers to cooperate, it is impossible for the Kingdom to work alone to reduce its share in the oil market, and thus lose its customers, and hand over their purchases to other countries, while others announce liberation from production restrictions, and want to pump at their full productive capacity, knowing that since 2010, the Kingdom has completed a plan to increase its production capacity to more than 12 million barrels per day, to meet the unexpected increase in demand. This plan required a lot of business and investment, but it did not produce this amount in order to maintain the balance of the petroleum market to all Parties.