Saudi Arabia should monitor oil market trends in long term, says Aramco CEO

 Saudi Aramco President and Chief Executive Officer (CEO), Amin Al-Nasser  

Saudi Arabia should monitor the oil market trends in the long term, as oil demand may increase through the current decade, said Saudi Aramco President and CEO Amin Nasser.

Oil demand was supposed to return to the pre-pandemic levels by the end of 2022, but most estimates indicate that this may be carried over to 2023, Nasser told analysts on the sidelines of the results' investor presentation, which was attended by Argaam.

Nasser further expected more declines, if market forecasts maintained a downtrend.

Saudi Aramco, together with global energy firms, can overcome challenges related to the increasing oil demand, while maintaining a low carbon footprint, Nasser indicated, adding that the oil giant has a resilient strategy to combat market volatility.

He also reiterated Aramco’s concerns about lack of investments to fulfill future demand, stressing that all concerned parties should realize such problem and pump more investments to ensure an abundant supply in the energy markets.

Nasser made a mention of Aramco’s plans to implement the biggest capital program in the company’s history, adding that golden opportunities will be embraced, while maintaining financial discipline as well as prudence.

“We are progressing the largest capital program in our history, and our approach is to invest in the reliable energy and petrochemicals that the world needs, while developing lower-carbon solutions that can contribute to the broader energy transition,” Nasser noted.

Saudi Aramco targets to more than double gas output by 2030 and plans to expand its liquids-to-chemicals capacity. Accordingly, liquid burning can be eliminated to boost export capacity.

There is a focus on creating an added and sustainable value from oil barrels in the upstream and downstream segments, in a bid to reach integration through the liquids-to-chemicals program, he explained.

The top executive also said there has been remarkable progress in developing new horizons to achieve the long-term goal of producing four million barrels per day, which will enhance investments to achieve operational net-zero emissions ambition.

The Saudi oil giant reported a net profit, excluding minority interest, of SAR 316.8 billion in H1 2022, up by 86% from SAR 169.5 billion in the year-earlier period. Q2 2022 earnings jumped 92% year-on-year (YoY) to SAR 174.8 billion.