Saudi Aramco to Pump ’Tight’ Natural Gas at Equal Cost to U.S.

Saudi Arabian Oil Co. plans to reduce the cost of producing natural gas from so-called tight rock formations, putting it on equal footing to gas from the best plays in the U.S., according to a company official.

The state-owned producer, known as Saudi Aramco, is now targeting a cost of $2 to $3 per thousand cubic feet of tight gas, Adnan Kanaan, manager of the company’s Gas Reservoir Managing department said in a report published today by the Society of Petroleum Engineers.