Oil Demand Continues Growth Saudi Aramco to Invest 400 Billion Dollar to Ramp up Oil Production
Saudi Aramco is confident that despite shale gas and renewable energy, the demand for oil will continue to soar. The Saudi public company therefore plans to invest billions in the production of both crude and gas.
Riadh/Saui Arabia – According to reports of broadcasting company n-TV, Aramco has put aside around US $ 40 billion per year to keep the oil output at the current level over a ten years period. The gas output shall, nevertheless, be doubled, the station quotes Aramco’s CEO Khalid Al-Falih. At the moment, the company can produce up to 12.5 million barrels per day with costs of around three dollar per barrel (1 barrel=159 liter). In 2013, Aramco produced an average of 8.2 million barrels per day.
To keep up with the growing demand, the industry will have to invest into new production capacities, insiders believe. Saudi Aramco, a public company in Saudi Arabia, manages around one fifth (260 million barrels) of the proven oil reserves of the world and is the number one contributing factor to the kingdom’s national finances.
Despite crises in the Iraq, Syria, North Africa or the Ukraine, an oil shortage is currently unlikely, industry experts state. Most states have filled their depots, resulting in low demand and prices of around US $ 102-103 per barrel Brent (compared to 115 in July 2014).