The myth of very low production cost in Saudi Arabia is one of the staples of the oil world. But those are some of the oldest producing fields of the world. Water cuts at some of the wells is said to be in excess of 90% which would make this oil anything but cheap to produce. EOR is the name of the game and will be even more so in the future. I expect some wells to become more expensive than shale in time and knowing Saudi Arabia, those wells are not small.
OPEC’s largest producer continues to expect global oil demand to keep rising at least by 2040 and sees itself as the oil producer best equipped to continue meeting that demand, thanks to its very low production costs.