Saudi Aramco: 6 Million Bpd of Global Oil Production is Being Lost Every Year
02.22.2024 By Tank Terminals - NEWS

February 22, 2024 [Oil Price]-Global oil supply is sufficient now, but natural declines at oilfields mean that the world would need to find a Saudi Arabia every two years to offset these production drops, Saudi Aramco’s chief financial officer Ziad Al-Murshed has said.

 

Due to the natural decline in operating fields, as many as 6 million barrels per day (bpd) of global oil production is being lost every year and needs to be replaced, Al-Murshed said at the Saudi Capital Market Forum 2024 in Riyadh.

The world is down to 3% of spare crude oil production capacity of global demand, Aramco’s executive said.

If there isn’t significant investment in oil production, the world could find itself short of spare capacity and supply, according to the manager.

Right now, Aramco sees sufficient supply on the market and believes that global oil demand has recovered, Al-Murshed said.

At the end of last month, Saudi Arabia surprised the oil market by announcing a shift in production capacity strategy. State oil giant Aramco said it was ordered by the Kingdom’s leadership to stop work on expanding its maximum sustainable capacity to 13 million barrels per day, instead keeping it at 12 million bpd.

Saudi Arabia’s decision to abandon the expansion plans is a result of the energy transition, Saudi Energy Minister, Prince Abdulaziz bin Salman, said earlier this month.

Global oil demand is expected to remain robust in the long term and the recent Saudi reversal of production capacity expansion shouldn’t be read as a view of falling demand, OPEC Secretary General Haitham Al Ghais said last week.

“First of all I want to be clear I cannot comment on a Saudi decision … but this is in no way to be misconstrued as a view that demand is falling,” Al Ghais told Reuters on the sidelines of a summit in Dubai.

 

Free Trial: Access 13,300 Tank Terminal and Production Facilities

13,300 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Oman Signs 10-Year LNG Supply Deal with Shell
04.17.2024 - NEWS
April 17, 2024 [Microsoft Start]- Oman LNG has signed a 10-year liquefied natural gas supply agre... Read More
Neuman & Esser to Build Green Hydrogen Plant in Chile
04.17.2024 - NEWS
April 17, 2024 [Gas Compression Magazine]- Neuman & Esser was awarded a contract from Empresa... Read More
Engie Buys Two Dutch Biogas Sites, Hunts for More
04.17.2024 - NEWS
April 17, 2024 [Reuters]- French energy company Engie (ENGIE.PA), opens new tab has acquired tw... Read More
Shell Named NanoVapor as Best Technology to Make a Tank Safe
04.17.2024 - NEWS
April 17, 2024 [Storage Terminals Magazine]- Shell Retail Engineering Network has recently implem... Read More