Saudi Arabia to develop World Class Tight Gas Field. Compete with U.S NATURAL GAS , ETHANE , NATURAL GAS LIQUIDS.

[BLA + 1,666]

 

Libya and Algeria have even bigger Tight Natural Gas , Ethane , Natural Gas Liquids and OIL opportunity. If they could just settle down. 

UAE recently made a major natural gas discovery. 

PLENTY OF NATURAL GAS.

Geography with proximity of market to producer will count in the future.  When now it costs more to ship the Natural Gas to Asia than it costs to buy it at Henry Hub. 

ARAMCO TO INVEST OVER $100 BILLION .  PLANS TO BE #1 EXPORTER NG BY 2030.

" Commercial production from the source-rock formation is not expected to begin until early 2024. By 2026, Aramco’s output from Jafurah is projected to be 2.2 Bcf/D of natural gas and 425 MMcf/D of ethane. In addition, the field is expected to produce another 550,000 B/D of natural gas liquids (NGLs) and condensate "

https://pubs.spe.org/en/jpt/jpt-article-detail/?art=6652

Edited February 26, 2020 by BLA

[0R0 + 6,251]

I guess they finally figured out the LNG driven future of shipping and petrochem, and are heading to catch the ramp up of LNG pricing when US shale oil production may slow, as any further oil price increases above $70 would drive further rapid substitution of LNG for oil. So they face a problem making a bigger profit out of oil fields, as NG is proving to be a cap on oil prices, even before there are significant numbers of EVs on the road. . 

[John Foote + 1,135]

Ask folks In Kingdom how well the unconventional is going there. To pull this off KSA will have a negative margin on their natural gas production unless things have dramatically changed in the past couple of years. This is the same country also building the world's largest petrochemical facility using crude instead of gas because of they are short gas. Left hand, meet right hand, wait, never mind, don't acknowledge the other hand.

Heck, they don't have enough NG now, hence prodigious amounts of crude for electricity and desalination, let alone become a major exporter. 

Just because they say it's so don't make it so. But once a top dog declares it, they can't be contradicted and so off the cliff they march in step, and there is plenty of money to be made in supporting the folly.