Saudi Arabia to Scale Back Long-Term Oil Production Capacity Expansion

Saudi Arabia is planning to curtail its long-term oil production capacity expansion, attributing the decision to the ongoing energy transition, as reported by Reuters citing Saudi Arabia’s energy minister on Monday.

Prince Abdulaziz bin Salman stated during the IPTC petroleum technology conference in Dharan, “We are ready to tweak up or downward at any time, whatever market necessity dictates.” On January 30, the Saudi Arabian government directed the state oil company Aramco to halt the expansion of its oil production. Instead, Aramco has been instructed to maintain its maximum sustained production capacity at 12 million barrels per day (bpd), one million barrels per day less than the targeted amount for 2027.

Prince Abdulaziz explained, “I think we postponed this investment simply because… we’re transitioning,” emphasizing that Aramco still needs to invest in petrochemicals, renewable energy, and the oil and gas sectors.

Correspondent

Correspondent

Leave a Reply

Your email address will not be published. Required fields are marked *