Saudi Arabia’s spare capacity of 4 million barrels per day can be absorbed into the market when energy demand recovers, the head of Saudi Aramco has said.
Khalid Al Falih, CEO of Aramco, said in a speech at a Cambridge Energy Research Associates conference in Houston: “Oil supply will decline if there is no investment, so that 4 million could be absorbed by demand alone,” Bloomberg reported.
Al Falih added that the country is capable of producing 12.5 million barrels per day and plans to maintain a spare capacity of more than 1.5 million barrels per day when demand returns.
“Over the next five years, we expect to invest another $90 billion with an increasing proportion of that directed to gas, as we roughly double our gas capacity over a 10-year period,” Al Falih said.
Al Falih also revealed that Saudi Arabia can cut its energy demand in half from 5% to 7% through improving its energy efficiency.
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