The world's insatiable demand for petroleum is about to cause more drilling and pumping in Saudi Arabia, as the country is set to begin setting up shop on the Khurais oil field. A ten-billion dollar investment will be made which is expected to allow the nation to pump one and a half billion additional barrels of oil per day by the end of next year. The project, which is already expected to begin shipping over a million barrels of oil beginning next June, is a massive undertaking.
Saudi Arabia has, to this point, resisted producing additional oil, as it believes there is no shortage at all. Instead, the country points to the low value of the U.S. dollar and unrealistic speculators are the major driving forces behind the record-high oil prices. Still, the country remains extremely important to major oil-consuming nations such as the United States as it currently produces eleven-percent of the world's daily supply of oil and is the only country left with relatively easy-to-tap oil reserves.
[Source: AP via The Detroit News]