• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 49 mins Tidal Power Closer to Commercialisation
  • 9 hours Why U.S. Growers Are Betting The Farm On Soybeans Amid China Trade War
  • 14 hours US-backed coup in Venezuela not so smooth
  • 24 hours BATTLE ROYALE: Law of "Supply and Demand". vs. OPEC/Saudi Oil Cartel
  • 6 hours Fisker Announces 'Mass Market' Electric SUV
  • 1 day Solar to Become World's Largest Power Source by 2050
  • 2 days Sounds Familiar: Netanyahu Tells Arab Citizens They’re Not Real Israelis
  • 1 day Biomass, Ethanol No Longer Green
  • 2 days Boeing Faces Safety Questions After Second 737 Crash In Five Months
Unpacking A Wild Week In Oil Markets

Unpacking A Wild Week In Oil Markets

Mounting bullish news from Saudi…

Julianne Geiger

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for US-based Divergente LLC consulting firm, and a member of the Creative Professionals Networking Group.

More Info

Aramco Ready To Invest To Meet Future Oil Demand


Citing $1 trillion in planned investments lost since the market downturn began, Aramco’s chairman of the board of directors Khalid Al-Falih issued a battle cry to the world’s other oil producers in its latest report, Saudi Aramco Annual Review 2017.

The message: mature oil fields are seeing an increase in declining production rates, and this must be offset by continued investments in the industry if the world is to meet what is thought to be an 1-1.5 million barrel per day annual demand growth rate in coming years.

“To respond to this situation, significant new investments are required in additional capacity and expanded and upgraded infrastructure, as well as the development of pioneering technology to make petroleum energy more sustainable and accessible,” Al-Falih said in his opening message to the 42-page report published on Friday.

Aramco’s annual report cites the International Energy Agency’s World Energy Outlook 2017 New Policies Scenario estimates that call for a 30 percent increase in global energy needs between now and 2040.

Saudi Aramco, for now the world’s top oil producer, is doing its part to meet this future demand, according to the report.

“Saudi Aramco is committed to playing its unique part in meeting the world’s energy needs today and tomorrow by continuing to invest wisely throughout the cycle and across the value chain, reinforcing our preeminent leadership position in the industry,” Al-Falih added.

Aramco referenced its new discoveries in the Sakab and Zumul oil fields, as well as its gas reservoir find in Sahba field. Other projects in 2017 that Aramco has invested include Khurais field (300,000 bpd by 2018), Fazran field (75,000 bpd by 2020), Dammam field (25,000 bpd by 2021; 75,000 by 2026). Fadhili Gas Plant (start up 2019, 2.5 billion scfd), Hawiyah Gas Plant (1.1 billion scfd).

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment
  • Corvettekid on August 21 2018 said:
    The Death of Ghawar is the longest-running story this side of STAR WARS. Matt Simmons and Charlie Maxwell talked up this angle in the 2000's as oil spiked to $140 and they predicted $300/bbl. oil within 5-10 years.

    Poppycock, as Mike Scioscia would say.

    Saudi Arabias has some production issues, but the great fear among OPEC countries and oil-rich countries like Venezuela and Argentina is that if they don't start selling the stuff in the ground in the next 5-15 years, it won't be sold at all as the world goes electric. Realistic or not, everybody wants to pump flat-out and sell what they have in the next few decades. Nobody wants to get stuck with 50 billion barrels of oil worth $0 in the year 2050.

    Saudi Arabia wanted prices higher the last few years. Increasing production was NOT in their interests, especially since they had budget issues and ramping up CAPX wasn't a way to help.

    A global oil price of $70-$90 is good for both producers and consumers. Let's hope it stays in that range, rather than AVERAGING that price by spiking to triple-digits and then plunging 75% in the next crash. Volatility is good for nobody.

    Except traders.
  • Dan on August 18 2018 said:
    Not like admitting to the world we are running out of cheap oil fast!
  • Mamdouh G Salameh on August 18 2018 said:
    There is no doubt that Saudi Aramco has the financial resources and access to the latest technology to invest in expanding future oil supplies.

    However, Saudi Arabia’s major oilfields including Ghawar, the world’s largest onshore oilfield and Safaniya, the world’s largest offshore oilfield which account for more than 90% of Saudi oil production, are more than 70 years old and are depleting fast at an estimated average depletion rate of 5% or 515,000 barrels a day (b/d) annually.

    Saudi Arabia needs to add more than 500,000 b/d annually just to maintain its claimed production at 10 mbd.

    The Khurais oilfiled which began production in 1963 along with the Farzan and Dammam fields could with a combined production of 475,000 b/d just offset the annual depletion in Saudi oil production rather than add to Saudi production.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News