Saudi Oil Minister Ali Al Naimi said today that his country will not reduce oil production and the market should adapt to their low prices from now on.
EFE
"Reducing the production of low cost, as the Saudi Arabia- to subsidize more expensive supplies only delay an inevitable adjustment in prices," Al Naimi said during the second day of the international IHS CERAWeek energy conference, held annually in Houston (United States).
Without directly citing, Al Naimi was referring to the unconventional reservoirs that abound in the United States and require expensive techniques such as hydraulic fracturing or "fracking" - to extract oil.
"Producers of these barrels high chaste must find a way to cut spending, get borrowed money or just liquidate the business," he suggested Al Naimi to admit that "sounds harsh, but it is the most efficient way to balance the market."
The minister made direct reference, now, to the exploitation of deposits in the Arctic, Canada, Venezuela or in deep water.
Despite these suggestions, Al Naimi said his country "has not declared a war" to the oil extracted from unconventional reservoirs and that prices are set by "the market".
Last week, Saudi Arabia reached a preliminary agreement with Qatar, Russia and Venezuela to freeze production levels January 2016 and thus stem the decline in oil prices, which last February 11 fell to $ 26, the figure more lowest in almost 13 years.
These countries will implement the measure if most producers seconded.
"Freezing is the beginning of a process. If we can accept that the major producers not to increase the current balance, it is likely that the large inventory we have now decreased in due time. But it will take time, "Al Naimi.
Monday, also in the IHS CERAWeek conference, Secretary General of the Organization of Petroleum Exporting Countries (OPEC), Abdallah Salem El-Badri, opted for the same strategy.