Aramco CEO: Global energy markets lost 3 billion barrels since Iran conflict
Amin Nasser says the Iran war has caused an unprecedented loss of 3 billion barrels in global energy supplies, warning of low oil inventories.
Saudi Aramco's CEO, Amin Nasser, disclosed that the ongoing Iran conflict has resulted in a significant loss of 3 billion barrels from global energy supplies, creating an unprecedented situation. In an interview with Al Arabiya Business, Nasser emphasized that the markets entered the crisis with oil inventories below required levels, warning that this could have escalated oil prices even higher.
To counteract the supply disruptions, Aramco is taking measures to boost the capacity of the East-West Pipeline to 10 million barrels per day. Additionally, the company is conducting engineering studies to explore new oil export routes. Currently, Aramco relies on three export routes: the Strait of Hormuz, Bab al-Mandab, and Sidi Kerir, and is working on doubling its storage capacity outside the Kingdom, particularly in Asian markets.
In terms of crisis response, Nasser confirmed that 90% of the materials Aramco required during the crisis were locally manufactured. Teams were already assessing damage and transporting repair materials even before fires were extinguished. He praised the company's workforce for their heroic efforts in managing the damage and restoring operational capacity.
Turning to gas production, Nasser stated that Aramco aims to increase gas output by 80% between 2021 and 2030. He assured that there are no delays in completing the second phase of the Jafurah project, which is set for completion in 2027. The company is also in the process of building its third gas network and considering a fourth, with gas exports contingent upon meeting domestic demand first.
Regarding technology and innovation, Nasser highlighted that Aramco holds the largest number of patents among energy companies. The value generated from technology over the past two years amounted to $11.3 billion. Furthermore, Aramco's oil production cost has remained consistent at $3 per barrel for decades, which Nasser attributed to the role of technology in maintaining production efficiency.
Written by urgent.news from Ajel English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
