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Saudi Arabia holds a substantial share of the world’s spare oil capacity – idle supply that can quickly be brought to market.
Speaking at the Energy Intelligence Forum in London, Nasser projected global oil demand would rise by 1.1 million to 1.3 million bpd this year, and by 1.2 million to 1.4 million bpd in 2026.
Nasser said Aramco’s extraction costs stood at $2 per barrel of oil equivalent (boe) for oil and $1 per boe for gas.
“We are determined to remain dominant in oil thanks to a massive resource base, low costs, and one of the lowest upstream carbon intensities across the industry,” Nasser said.
“We also see resilient demand, and the pressing need for long-term investments in supply is now widely accepted.”
ARAMCO SCALES BACK CAPACITY TARGET
The Saudi energy ministry ordered Aramco in January 2024 to u-turn on a maximum sustainable capacity target of 13 million bpd, reinstating the earlier 12 million bpd target that had been in place before March 2020. The International Energy Agency estimated Saudi Arabia’s spare capacity at 2.43 million bpd in August, out of the 4.05 million bpd held by OPEC+. Saudi Arabia produced more than 9.7 million bpd of crude that month.
The International Energy Agency estimated that Saudi Arabia’s spare capacity was 2.43 million bpd in August out of the total 4.05 million bpd spare capacity held by OPEC+. Saudi Arabia produced more than 9.7 million bpd of crude in August.
Aramco, the world’s top oil exporter, still views chemicals as a strategic growth area, even as rivals such as Shell and Exxon Mobil scale back operations.
“Despite the current downturn, chemicals remain a key long-term growth area, with our proven strengths in both feedstocks and conversion,” CEO Amin Nasser said.
The company has been expanding its downstream and petrochemical portfolio to diversify revenue.
On October 9 it gained majority control of Petro Rabigh by acquiring a 22.5% stake from Sumitomo Chemical. In July, it bought a 10% stake in China’s Rongsheng Petrochemical for $3.4 billion, securing access to a 400,000 bpd refinery.
It is also building an $11 billion petrochemical complex with TotalEnergies at their existing Satorp refinery in Saudi Arabia expected to produce 1.65 million metric tons annually of ethylene from 2027.
TotalEnergies said last month it is expanding in Saudi Arabia due to competitive feedstock and energy costs, even as it closes some European operations.
(Reporting by Shadia Nasralla and Stephanie Kelly in London; Writing by Yousef Saba; Editing by Susan Fenton and Louise Heavens)
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