Saudi Aramco Can Supply 12M Bpd Soon
Oman Nasser, Chief Executive Officer of Saudi Aramco, explained that Brent crude oil prices would have reached $200 per barrel if it weren’t for the existence of the East-West pipeline, amidst pressures on energy supplies and markets. Global oil reserves are estimated to be around 10 billion barrels, but approximately 3 billion barrels of supplies have been lost, with less than 6 billion barrels of commercially available reserves remaining that are not practically accessible. The company anticipates that rebuilding these stocks could take up to two years, with market pressures continuing until the Strait of Hormuz reopens fully and confidence is restored. Nasser emphasized that Aramco is capable of supplying 12 million barrels per day within days if needed, and is working on additional export routes for oil, as well as enhancing the flexibility of its supply chain to face disruptions. Meanwhile, global oil demand is expected to remain steady over the next two years, supported by growth in Chinese demand for chemicals, which offsets the decline in demand due to the shift towards electricity.
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