All articles tagged with #oil capacity
Saudi Arabia’s East-West pipeline (about 7 million barrels per day) and the UAE’s ADCOP (around 1.5–1.8 million bpd) bypass the Strait of Hormuz and can partially offset the roughly 20 million bpd that typically transits Hormuz, but actual relief depends on utilization and security risks; ongoing Iran war and incidents at facilities like Ruwais could cap throughput and keep oil prices volatile.
Saudi's state-controlled oil giant Aramco suspended its capacity expansion plans due to the green transition, with Energy Minister Abdulaziz bin Salman emphasizing the shift towards renewables for future energy security. The decision to halt the increase in crude production capacity was a result of continuous market review, reflecting the evolving energy landscape. Saudi Arabia aims to decarbonize by 2060, with Aramco targeting operational net-zero emissions by 2050, aligning with efforts to diversify the kingdom's economy away from fossil fuels.
Saudi Arabia's energy minister cited the energy transition as the reason for the kingdom's U-turn on its oil capacity expansion plans, stating that there is a "huge cushion" of spare capacity to cushion the oil market. The state oil company Aramco remains ready to raise capacity if needed, with about 3 million barrels of spare capacity. The minister criticized the International Energy Agency's decision to release oil from emergency reserves to cool global prices and downplayed suggestions that oil demand will peak soon. Additionally, the possibility of a further offering of Aramco shares this year remains a "shareholder decision."