Aramco warns of a rapid decline in global oil reserves

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She said Saudi Aramco Company Oil production capacity around the world is rapidly declining, and companies need to invest more in production.

The company’s CEO, Amin Al-Nasser, said that it was “a major concern, especially as the reserve capabilities are shrinking,” according to what he said in an interview with Bloomberg Agency, which was seen by Al Arabiya.net.

His comments come as crude oil prices have risen 70% this year to around $85 a barrel, and many major consumers, including the United States, Japan and India, have called on producers to pump more.

Nasser said, that the supply deficit in the oil markets may worsen in 2022 if the outbreak of the Corona virus epidemic eases, and the travel movement returns to normal.

quick retreat

He added, “If there is a recovery in the aviation sector next year, this spare capacity will be exhausted. It has now reached a situation where the supply is limited…all that is left of the inventory is rapidly declining.”

Many oil and gas traders have criticized governments and climate activists for calling companies to stop investing in fossil fuels, saying it will lead to energy shortages in the next decade.

Aramco, the world’s largest oil company, is investing billions of dollars to raise its daily capacity to 13 million barrels from 12 million. The project is expected to be completed by 2027.

Many Wall Street banks and OPEC+ members are suspicious of a supply shortage next year. JPMorgan Chase said oil markets will turn into an oversupply of 1 million barrels by March from a current deficit of about 1.5 million barrels.

In turn, Saudi Energy Minister Prince Abdulaziz bin Salman said there could be a “significant rise” in crude stocks in 2022.

Prince Abdulaziz added: “Covid is still present,” justifying the OPEC + refusal to ease the large supply cuts that began last year faster, as demand for jet fuel remains limited in terms of growth. “If you do more now, you are accelerating the problem.”

The Organization of the Petroleum Exporting Countries (OPEC) and its partners are increasing daily production by 400,000 barrels per month. The group of 23 countries led by Saudi Arabia and Russia will then meet on the 4th of November to decide whether to change the strategy.





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