• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 4 hours Could Venezuela become a net oil importer?
  • 57 mins Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 7 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 13 hours Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 4 hours Gazprom Exports to EU Hit Record
  • 7 hours Why is permian oil "locked in" when refineries abound?
  • 5 hours EU Leaders Set To Prolong Russia Sanctions Again
  • 4 hours Oil Buyers Club
  • 4 hours Could oil demand collapse rapidly? Yup, sure could.
  • 6 hours Oil prices going down
  • 2 hours Saudi Arabia turns to solar
  • 1 day Teapots Cut U.S. Oil Shipments
  • 21 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 7 hours EVs Could Help Coal Demand
  • 13 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 1 day Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside

Saudi Aramco to Spend $35 Billion on Increasing Oil Production Capacity by 2017

Khalid al-Falih, the head of the world’s biggest oil producer, Saudi Aramco, has given a speech at Oxford University in which he mentioned that his company will invest $35 billion over the next five years to create new oil production opportunities and maintain an oil production capacity cushion which the world heavily relies upon.

He stated that “preserving our spare oil production capacity is crucial to maintaining oil market stability because it plays a pivotal role in protecting the world's economic health.”

“So we are continuing to strengthen our oil business to meet the rising call on our oil production; in fact, we plan to invest $35 billion over the next five years in crude oil exploration and development alone to keep our oil production portfolio robust.”

Related Article: Smash the Rally in Oil

Despite the weak demand in Europe, a result of the poor economic climate there, Saudi Aramco has been producing oil at record levels, nearly 10 million barrels a day; mostly due to the loss in oil production from Iran.

Large investments are needed to maintain or even increase this production capacity, to make up for the decline of older fields, if Saudi Arabia hopes to maintain its position as the world’s only flexible producer over the next decade.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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