Saudi Aramco: Oil supplies for coming years lag behind substantially

Haradh, SAUDI ARABIA: A general view shows a new plant inaugurated 22 March 2006 in Haradh, about 280 kms (170 miles) southwest of the eastern Saudi oil city of Dhahran, launching a project adding 300,000 barrels of oil to the kingdom's daily production capacity. The facility which was opened today in a ceremony attended by Saudi Oil Minister Ali al-Nuaimi was completed in January, ahead of schedule, the company said. Approximately 160 kms (100 miles) of new pipeline and extensions will transport crude and gas products to processing facilities further north in the Eastern Province, a statement said. Saudi Arabia, the world's top crude producer and exporter, currently pumps around 9.5 million bpd of oil and has a production capacity of around 11 million bpd. AFP PHOTO/STR (Photo credit should read -/AFP/Getty Images)

Saudi Aramco: Oil supplies for coming years lag behind substantially

By Leman Zeynalova – Trend:

While the short-term market points to a surplus of oil, the supplies required in the coming years are falling behind substantially, said Saudi Aramco President and CEO Amin Nasser.

Saudi Aramco’s long-term strategy of continued investment in core oil and gas projects, downstream and chemicals is necessary to help meet future energy demand and enable the successful transition of the global economy as the market rebalances itself, Nasser said at the Columbia University School of International and Public Affairs (SIPA) Global Energy Summit, the company’s website reports.

“In my view, the future market situation will be increasingly on firmer grounds, though volatility could continue until the rebalancing takes firmer hold and inventory withdrawals assume a more consistent trend,” he added.

Consistent with the company’s long-term view of energy investment and in line with Saudi Vision 2030, Saudi Aramco is continuing to invest and strengthen its core oil and gas business across the value chain, Nasser said.

Nasser said this strategy includes doubling gas production over the next 10 years to 23 billion standard cubic feet a day, which would position Saudi Arabia as having the highest share of gas in utilities in the G-20 group of industrialized nations; enhancing the company’s downstream business portfolio, which would increase global refining and marketing capacity to approximately 8-10 million barrels per day.