Saudi Aramco, the world’s biggest oil producer, plans to invest $40 billion a year over the next decade to keep oil production capacity steady and double gas production, Chief Executive Khalid Al-Falih said yesterday. State-owned Aramco sees more capital going into offshore projects and expects rising costs across the oil sector to underpin oil prices, Al-Falih told a conference.
Oil prices fell to a 14-month low of $101.07 last week as global demand growth weakens, even as production ramp ups in several places create an oil glut.
“To meet forecast demand growth and offset (global output) decline, our industry will need to add close to 40 million barrels per day of new capacity in the next two decades,” Al-Falih said.