Aramco ready to in­vest to meet fu­ture oil de­mand

Zambian Business Times - - COMMODITIES -

Cit­ing USD$1tril­lion in planned in­vest­ments lost since the mar­ket down­turn be­gan, Aramco’s chair­man of the board of direc­tors Khalid Al-Falih is­sued a bat­tle cry to the world’s other oil producers in its lat­est re­port, Saudi Aramco An­nual Re­view 2017.

The mes­sage: mature oil fields are see­ing an in­crease in de­clin­ing pro­duc­tion rates, and this must be off­set by con­tin­ued in­vest­ments in the in­dus­try if the world is to meet what is thought to be an 1-1.5 mil­lion bar­rel per day an­nual de­mand growth rate in com­ing years.

“To re­spond to this sit­u­a­tion, sig­nif­i­cant new in­vest­ments are re­quired in ad­di­tional ca­pac­ity and ex­panded and up­graded in­fras­truc­ture, as well as the de­vel­op­ment of pi­o­neer­ing tech­nol­ogy to make pe­tro­leum en­ergy more sus­tain­able and ac­ces­si­ble,” Al-Falih said in his open­ing mes­sage to the 42-page re­port pub­lished on Fri­day.

Aramco’s an­nual re­port cites the In­ter­na­tional En­ergy Agency’s World En­ergy Out­look 2017 New Poli­cies Sce­nario es­ti­mates that call for a 30 per­cent in­crease in global en­ergy needs be­tween now and 2040.

Saudi Aramco, for now the world’s top oil pro­ducer, is do­ing its part to meet this fu­ture de­mand, ac­cord­ing to the re­port.

“Saudi Aramco is com­mit­ted to play­ing its unique part in meet­ing the world’s en­ergy needs to­day and to­mor­row by con­tin­u­ing to in­vest wisely through­out the cy­cle and across the value chain, re­in­forc­ing our pre­em­i­nent lead­er­ship po­si­tion in the in­dus­try,” Al-Falih added.

Aramco ref­er­enced its new dis­cov­er­ies in the Sakab and Zu­mul oil fields, as well as its gas reservoir find in Sahba field. Other projects in 2017 that Aramco has in­vested in­clude Khu­rais field (300,000 bpd by 2018), Fazran field (75,000 bpd by 2020), Dam­mam field (25,000 bpd by 2021; 75,000 by 2026). Fad­hili Gas Plant (start up 2019, 2.5 bil­lion scfd), Hawiyah Gas Plant (1.1 bil­lion scfd).

By Ju­lianne Geiger for Oil­price.com

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