"There is a possibility that the Kingdom will increase its reserves by around 200 billion barrels, either through new finds or by increasing what it produces from existing fields," Ali Al-Naimi, Saudi Minister of Petroleum and Mineral Resources was quoted as saying by the Saudi press agency.
"These huge reserves enable the Kingdom to remain a major oil producer for 70 to 100 years, even if it raises its production capacity to 15 million barrels per day, which may well happen during the next 15 years," he said.
The Kingdom was considering investment in building refineries in India, China and other countries, he said.
Al-Naimi also underlined the importance of the pioneering role played by the oil-based industry in developing Saudi business and economy and expected its further growth in coming years due to the expansion of oil and gas exploration. He claimed that Saudi Arabia doubled its gas production capacity from three to seven billion cubic feet daily.
Al-Naimi said his country was keen on stability in the world oil market and on forging close working relations based on proper economic principles, with oil producing states, particularly OPEC members, and oil consumers.
Saudi Arabia, the world's largest oil exporter, is telling petroleum buyers it will supply them with all the oil they want to help them build up inventories ahead of an expected sharp rise in energy demand later this year.
Last week, Goldman Sachs said in a report that the world was entering a super price-spike period during which prices could rise to as much as $105 a barrel before demand wanes and moderates markets.
The International Energy Agency estimates that oil demand will rise to 86.1 million barrels a day in this year's fourth quarter -- up 3.3 million barrels a day, or nearly 4%, from the current quarter. The forecast increase is more than double Saudi Arabia's current spare output capacity of 1.5 million barrels a day.
The Saudi offer to pump up to the limits of their capacity comes amid the continued surge in oil prices, which are near a recent high after more than a year of volatility.
The Saudis have operated at such capacity just twice in recent years, on the eve of the Iraq invasion of 2003 and last year after US hurricanes hit the American oil patch.
The kingdom is acting now because it is getting anxious that the run-up in oil prices could backfire on oil nations later this year by damping global economic growth and thus energy demand, said a senior official at the Organization of Petroleum Exporting Countries who is familiar with the Saudi policy.
Earlier this week, Saudi Arabia lowered its export prices to attract buyers of its crude for similar reasons.
Last month, OPEC promised to produce more oil, but that move has had little impact on prices. The Saudi vow to meet all orders goes well beyond the cartel's March decision to raise its output ceiling, and sidesteps bickering among members over whether to raise the limit even further.
