Saudis promise high oil output

Press, 27 March 1980, Page 9

Saudis promise high oil output

, NZPA-Reuter London: The Saudi Oil Minister] (Sheikh Ahmed Zaki Yarn-; ani) has said that Saudi] Arabia will keep its oil output at its present high level at least until July, which should ensure that planned; cuts by other producers do| not mean a shortage and! soaring prices. But Sheikh Yamani added! a warning that Saudi Arabia could not be expected to go on for ever using its huge’ 9.5 million barrels a day! production to save the world | from the consequences of| unrestrained greed for oil. ■ In a speech to the British Institute of Directors he called for a global energy programme to “move outworld away from the edge of an abyss.” Among guiding principles for this he suggested that industrialised countries both try harder to conserve energy and mitigate environmen-

1 tai restraints on the develi opment of alternatives to [oil. such as coal and nuclear ; power. ■ Sheikh Yamani was asked 'from the audience whether [speculation was correct that 'Saudi Arabian output would [be drastically cut — Kuwait, iLibya, .md Venezuela, and [ some other producers plan ■cuts from April 1 which will 'reduce total output by thei [Organisation of Petroleum! Exporting Countries to; I below 29 million barrels a[ day compared with 30.7 mil-; I lion in 1979. , Sheikh Yamani replied 'that the world’s biggest! exporter would stay at its, present level of 9.5 million barrels a day, at least for the second quarter of 1980. Saudi Arabia went up, by one million barrels daily, to this figure last year when output by Iran was slashed during the revolution there. Then ojl was short and world prices doubled. !