The world's biggest oil producers including Saudi Arabia have failed to reach an agreement to freeze output at January level till October 2016

Saudi Arabia:  A total of 18 oil-producing nations from OPEC and Non-Opec Countries representing about 73 percent of world output were gathered in Doha, Qatar to approve a freeze on oil production at January levels until October 2016.This summit ended without an agreement as Saudi Arabia and Iran decided not to curtail their production. Saudi Arabia demanded that Iran should join a global deal on freezing oil output.  Iran has decided not to participate and refused to stabilize the production as they want regain market share after lifting of sanctions in January 2016.

TechSci Research depicts that Saudi Arabia, producing 10 million barrels of oil per day, is keeping its production high to cover government spending. Saudi Arabia plans to carry out its oil field operations in accordance to its pre-existing exploration and production plans, thereby boosting oil field equipment rental market in the country. The biggest reason attributable to this is the country’s unwillingness to lose its share in global oil & gas exports. 

According to TechSci Research report, “Saudi Arabia Oil Field Equipment Rental Market Forecast & Opportunities, 2020”, Saudi Arabian market for oil field equipment rental is projected to grow at around 11% through 2020. The eastern region of the country accounts for a lion’s share in Saudi Arabia’s oil field equipment rental market, and the region’s dominance is expected to continue over the next five years.