Saudi Aramco, the national oil giant of Saudi Arabia, revealed Wednesday that it has discovered 14 new oil and natural gas reserves, with the potential to add more than 80 million cubic feet of gas and over 8,000 barrels of oil per day to the Kingdom’s growing fossil fuel production. These discoveries, made primarily in the Eastern Region and the expansive Empty Quarter, span both oil and gas reservoirs. While the newly discovered reserves are moderate in volume compared to Saudi Arabia’s vast existing reserves, analysts are optimistic that the findings signal ongoing progress in the nation’s energy expansion efforts.
In addition to the discoveries, Saudi Aramco is advancing its technology to further enhance extraction capabilities, a critical move as the Kingdom seeks to bolster its fossil fuel output amid global economic fluctuations.
As of February 2025, Saudi Arabia’s crude oil production stands at nearly 9 million barrels per day, maintaining its dominance in the global energy market. However, the country’s expansion plans face challenges due to the current price environment. The International Monetary Fund (IMF) recently estimated that Saudi Arabia’s fiscal breakeven price per barrel of oil for 2025 would be $90. Yet, as of April 9, Brent crude was trading at just $60.38 per barrel, while the OPEC Basket price stood at $66.54.
Saudi Arabia, a key player in the OPEC+ alliance, began easing its output cuts on April 1, with plans to increase oil production by 138,000 barrels per day in April to contribute to the global supply.
Meanwhile, Saudi Arabia is also grappling with a projected fiscal shortfall. The Kingdom’s 2025 budget anticipates expenditures of $342 billion, with revenues forecasted to be lower at $316 billion, resulting in a $27 billion deficit or approximately 2.3% of GDP. In response, Riyadh plans to issue more debt to cover the gap.
Beyond oil, Saudi Arabia is pursuing significant growth in its petrochemical sector. On Wednesday, Aramco announced a strategic partnership with China Petroleum & Chemical Corporation (Sinopec) and Yanbu Aramco Sinopec Refining Company (Yasref) to expand its petrochemical complex on the Kingdom’s west coast. The expansion will include a new petrochemical unit featuring a large-scale mixed-feed steam cracker with an annual capacity of 1.8 million tonnes, along with a 1.5 million tonnes per year aromatics complex.
As Saudi Arabia moves forward with these energy and industrial expansions, the Kingdom faces both the challenges of fluctuating oil prices and the potential for sustained growth in its diversified energy sectors.