Saudi Aramco CEO: Saudi Aramco's maximum oil production capacity can be sustained for an entire year at 12 million barrels per day.
Saudi Aramco's Chief Executive Amin Nasser said that the company can maintain crude oil production of 12 million barrels a day (bpd), for an entire year, without incurring any additional costs.
Saudi Arabia has a large share of the world’s spare oil supply – idle oil that can be quickly brought to market.
Nasser, speaking at the Energy Intelligence Forum held in London, projected that global oil demand will rise by between 1.1 and 1.3 million barrels per day (bpd) this year, as well as by 1.2 to 1.4 millions bpd by 2026.
Nasser stated that Aramco's oil extraction costs were $2 per barrel equivalent (boe), and $1 for gas.
Nasser stated that "we are determined to stay dominant in the oil industry thanks to our massive resource base, affordable costs and the lowest carbon intensity upstream across the entire industry."
The need to invest in long-term supply has become widely acknowledged.
ARAMCO CUT BACK CAPACITY TAG
In January 2024, the Saudi energy ministry instructed Aramco to reverse its position on a target for maximum sustainable capacity of 13 million barrels per day (bpd), reverting back to an earlier target of 12 million barrels per day that was in place prior March 2020. Saudi Arabia had a spare capacity of 2.43 million bpd, which was compared to the 4.05 millions bpd that OPEC+ held in August. Saudi Arabia produced over 9.7 million barrels per day of crude oil in August.
Saudi Arabia had a spare capacity of 2.43 million bpd out of a total spare capacity of 4.05 million bpd held by OPEC+. Saudi Arabia produced over 9.7 million barrels per day of crude oil in August.
Aramco is the top oil exporter in the world. It still sees chemicals as an area of strategic growth, even though rivals like Shell and Exxon Mobil are scaling back their operations.
Amin Nasser, CEO of Amin Nasser Chemicals, said that despite the current economic downturn, chemicals are still a major growth area for long-term. We have proven capabilities in feedstocks as well as conversion.
To diversify its revenue, the company is expanding its portfolio of downstream and petrochemical products.
It acquired a majority stake in Petro Rabigh on October 9 by purchasing a 22,5% stake from Sumitomo. In July it purchased a 10% share in China's Rongsheng Petrochemical, which gave access to a refinery with a capacity of 400,000 barrels per day, for $3.4 billion.
The company is building an 11 billion dollar petrochemical facility with TotalEnergies in Saudi Arabia at the existing Satorp refinery. This complex will produce 1,65 million metric tonnes of ethylene annually by 2027.
TotalEnergies announced last month that it was expanding its operations in Saudi Arabia because of the low cost feedstocks and energy. It also closed some European operations. Reporting by Shadia Naralla and Stephanie Kelly, London; Writing by Yousef Sabah; Editing and proofreading by Susan Fenton and Louise Heavens
(source: Reuters)