Oil & Gas

According to Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman, an additional 15 trillion cubic feet (tcf) of gas has been confirmed at Saudi Aramco’s Jafurah gas field. This discovery would increase the total reserves in the eastern Saudi field to about 229 tcf, making it the largest unconventional non-oil associated gas field in the country and potentially the biggest shale gas development outside the U.S.

This discovery is significant for Saudi Arabia as it aims to become a greener energy country by boosting domestic gas supply for power generation, thereby reducing the need to burn oil. The Saudi government also aims to become a major gas exporter by 2030. However, there are questions about the extent of this discovery, given Saudi Aramco's history of suddenly finding new reserves during times when the country's geopolitical position, based solely on its hydrocarbon resources, seems to be in decline.

For example, in the past, Saudi Arabia has significantly increased its official oil reserves without the discovery of major new oil fields. This raises questions about the accuracy of the reported gas reserves and the potential impact on Saudi Arabia's energy goals. Additionally, previous claims by Saudi Arabia to become a greener energy producer have not always materialized, as seen in its handling of fuel oil production and consumption.

While the Jafurah field's estimated gas reserves are substantial, there are doubts about whether it can make Saudi Arabia a major gas exporter by 2030. Even if the quality of the Jafurah find is exceptional, Saudi Arabia would still face challenges in meeting its power generation needs solely through gas production, especially considering projected increases in demand.