Saudi Aramco reported its net profit for 2021 had risen twofold to $110 billion thanks to the surge in oil prices. Thanks to the strong performance, the company said it would boost its investments, focusing on blue hydrogen and carbon capture.
“Although economic conditions have improved considerably, the outlook remains uncertain due to various macro-economic and geopolitical factors,” said Aramco’s chief executive, Amin Nasser. “But our investment plan aims to tap into rising long-term demand for reliable, affordable and ever more secure and sustainable energy.”
The company has made a point of noting it will invest considerable sums in non-oil operations such as low-carbon production, renewables, and carbon capture and storage. Yet it is not moving away from its core business, either.
“We recognize that energy security is paramount for billions of people around the world, which is why we continue to make progress on increasing our crude oil production capacity, executing our gas expansion program and increasing our liquids to chemicals capacity,” Nasser said.
In addition to capacity, Saudi Arabia is boosting exports as well. In the first two months of this year, the Kingdom once again took the top spot among China’s oil suppliers after Russia replaced it at the top in December.
According to a Reuters report, Saudi oil shipments to the world’s top importer averaged 1.81 million bpd in January and February, which was more than Russia’s 1.57 million bpd, but it was down from Saudi’s own 1.86 million bpd a year earlier, at least in part because of lower import quotas.
Aramco is also boosting spending. Last year’s capex was 18 percent higher than a year earlier, at $31.9 billion, and this year’s is seen at between $40 and $50 billion. Capex will continue to grow until about 2025, Aramco said, as it remains focused on meeting the growing demand for oil.
By Irina Slav for Oilprice.com
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