Nasser: The surplus production capacity remains limited at two million barrels per day
The CEO of Saudi Aramco, Amin Al-Nasser, told Al-Arabiya today, Sunday, that there are discussions regarding major partnerships in China, which will be announced within a year or two.
Al-Nasser explained that the Kingdom’s relationship with China has been characterized by prosperity in recent years, which allowed both countries to cooperate in projects that promote economic growth.
Al-Nasser said that the oil market will remain tightly balanced in the medium term, adding that he is cautiously optimistic.
He explained that the surplus production capacity remains limited at two million barrels per day, at a time when there is a rise in demand for jet fuel, in addition to the opening of the Chinese market following Beijing lifted the strict restrictions it imposed to control the Corona virus.
He continued, “There are signs of a recovery in global oil demand with the reopening of China’s economy and the increase in air traffic.”
In a related context, the head of Aramco confirmed that the risks of lack of global investment in the energy sector are real, and contribute to rising energy prices and market instability.
Al-Nasser added that Aramco’s focus is not only on expanding oil, gas and chemicals production, but also on investing in new technologies for sustainability and carbon reduction.
“The Sustainability Fund invests in technologies that support our reach to zero neutrality…and our funds related to technology and entrepreneurship have exceeded 13 billion riyals,” according to Al-Nasser.
He expected the company’s capital expenditures in 2023 to range from 169 billion riyals to 206 billion riyals, including foreign investments, with an increase in investment spending until regarding the middle of the current decade.