That's right. This article is about the production of crude oil, not necessarily the capacity for production.

True, but the reason it doesn't deploy it is that it has decided it cannot drive the U.S. frackers out of business, even if it drives them into bankruptcy. The initial investor may lose their investment, but the oil keeps flowing. So, they are trying to bring the price back up by holding back some of their capacity. Either way, it doesn't seem like the amount of money they got when a barrel of oil cost $125 or more, is coming back any time soon.

Nobody really knows what Saudi reserves are. Including, very possibly, the Saudi's themselves. Moreover, very old fields and, I believe, little in the way of new discoveries.