Aramco cites energy transition in expansion curb

Saudi Arabia has attributed its recent production capacity benchmark to the energy transition, the Saudi Minister of Energy Abdulaziz bin Salman Al-Saud announced on Monday at the International Petroleum Technology Conference in Dehran, Saudi Arabia.

In January 2023, Saudi Arabia received orders from the government to set its maximum sustainable capacity to 12 million bpd, halting its oil capacity expansion plans.

Saudi Aramco has set a goal to reach net-zero carbon emissions by 2050 ahead of the nation’s target of being net-zero by 2060.

At the same conference Saudi Aramco’s CEO Amin Nasser said that the company had spare capacity of 3 million barrels and that the company was open to increasing its maximum sustained capacity should the rule be lifted.

Nasser also suggested that oil demand could increase to 104 million bpd in 2024 and to 105 million bpd in 2025.

According to OPEC, oil demand hit a record year in 2023, reaching 102 million bpd.

In November 2023, the International Energy Agency predicted the oil market could shift into a surplus in 2024.

Also on Monday, Reuters announced that shareholders were waiting to decide to sell more shares in the company in 2024.