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Saudi Aramco sees long-term oil shortage amid insufficient investment

Saudi Aramco sees long-term oil shortage amid insufficient investment”

Saudi Arabia's oil giant Saudi Aramco is warning again that if the oil and gas industry doesn't start investing again, the global oil supply/demand curve will reach a turning point in "a couple of years", Aramco's CEO Amin Nasser said on Monday, noting that the oil price crash that began in 2014 has already wiped out US$1 trillion worth of investments. The price of oil will have to be "optimal", Eid-Oakden said, suggesting a price-per-barrel of around $60.

He stressed that oil industry will play main role in energy field for a long period: "Because transition to the alternative fuel sources will take a long period and difficulties".

The state-run company known formally as Saudi Arabian Oil Co., the world's biggest oil exporter, boosted production to an annual record a year ago before the kingdom led the Organization of Petroleum Exporting Countries and other producers to curb output to stem a global glut.

Nasser noted that Saudi Aramco is prioritizing the direct conversion of oil to petrochemicals as a major part of its long-term strategic focus. In the record IPO, the government is planning on selling about 5% of the company in 2018.

An afternoon recap of the day's most important business news, delivered weekdays. "Investments in smaller increments such as shale oil will just not cut it".

Saudi Aramco was established in 1933.

The oil company plans to invest over $300 billion in the next decade to maintain its production capabilities while also allowing them to explore for more natural gas.

Aramco's capital investment program past year was its biggest ever, he said, without specifying what it spent.

"We have collaborated with many oil and gas companies to promote low-emission solutions, to include our commitment to the Oil and Gas Climate Initiative's $1 billion investment fund to develop and rapidly deploy those technologies", Saudi Aramco CEO said. The forecast increase will raise the share of gas in the kingdom's utilities to about 70 percent, the "highest of any G20 nation, " he said. This will be happening while Saudi Arabia is committed to developing solar energy and restructuring its nation to be "nothing less than a solar powerhouse".



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