Last summer, Saudi Arabia put the final bolt in its largest oil expansion project ever, opening a new field capable of pumping 1.2 million barrels a day – more than the entire production of Texas. The field, called Khurais, was part of an ambitious $60 billion program to increase the kingdom’s production to meet growing energy needs. It turns out the timing could not have been worse for Saudi Arabia. Only two years ago, consumers were clamoring for more supplies, OPEC producers were straining to increase their output, and prices were rising to record levels. But now, for the first time in more than a decade, the world has more oil than it needs. As demand slumped because of the global recession, Saudi Arabia was forced to shut about a quarter of its production. After raising its capacity to 12.5 million barrels a day, Saudi Arabia is now pumping about 8.5 million barrels a day, its lowest level since the early 1990s. ‘2009 was painful for us as it was for everybody else, said Khalid A. al-Falih, the president and chief executive of Saudi Aramco, the kingdom’s state-owned oil giant, and a company veteran who was […]