JEDDAH: Saudi Aramco CEO Amin Nasser said his company is working on increasing its crude production capacity even as investments in the oil industry is falling down and the company is challenged with reducing carbon emissions.
it will take until 2027 for Saudi Aramco to increase its capacity from 12 million barrels per day to 13 million barrels. “It will not happen overnight,” Nasser said.
“It takes years, 2-3 years between front-end engineering and then construction will take also another 3-4 years,” he said.
“We are doing our share in terms of building (capacity) even though we have adequate spare capacity today. We are bringing additional supplies to the market while we’re working on reducing our emissions at the same time,” Nasser said.
Nasser is bullish on oil demand next year as he sees the demand for oil "very healthy".
The CEO of the world's largest oil producer said that oil demand will hit 99 million barrels a day by end of 2021 and it may jump over 100 million barrels next year, he told the Energy Intelligence forum.
"The forecast for next year will be over a hundred million barrel. So Over all the demand is very healthy," he said.
Oil prices are trading around $80 and Nasser attributed this to the increase in demand.
We are doing our share in terms of building (capacity) even though we have adequate spare capacity today. We are bringing additional supplies to the market while we’re working on reducing our emissions at the same time.
He said there are several factors that affect the supply in the market. One of the main factors, the Aramco chief said, investment cuts in the oil industry.
Nasser said transition to other energy sources is important but it has to be done in an orderly fashion.
“We are doing our best to reduce CO2 emissions but the market needs to develop first. We are focusing on CCUS, conversion of CO2 to other products, hydrogen,” he said.
CEO of Aramco Amin Nasser says the surge in gas prices is triggering a gas-to-oil shift as much as 500 kbpd -- which is bigger than the 400 kbpd #OPEC+ monthly increase
— Salih Yilmaz (@salihenergy) October 4, 2021