Saudi Aramco CEO says world facing major oil supply crunch

Amin Nasser, CEO and President of Saudi Aramco

Amin Nasser, CEO and President of Saudi Aramco, said the world is facing a major oil supply crunch as most companies are afraid to invest in the sector as they face green energy pressures, Reuters reported.

He added that Aramco cannot expand production capacity any faster than promised. The world’s largest oil exporter is sticking to the target of expanding capacity to 13 million barrels per day (bpd) by 2027, from the current 12 million bpd, despite calls to do it faster. "The world is running with less than 2% of spare capacity, Nasser elaborated on the sidelines of the World Economic Forum (WEF).

Before COVID-19 the aviation industry was consuming 2.5 million bpd more than today. If the aviation industry picks up speed, you are going to have a major problem, Nasser added.

The world is facing an energy crisis because of a lack of investment, he noted, adding that it started to bite following the pandemic.