Saudi Arabia’s state-owned oil company, Aramco, has promised to increase its investment in oil production after reporting on March 20 that profits more than doubled year-on-year to $ 110 billion.
The world’s largest oil exporter said its 2021 net profit increased 124% from $ 49 billion in the previous year to $ 110 billion.
Aramco said it has raised its capital investment to $ 40-50 billion to increase production and meet growing demand, “more growth is expected by mid-2010.”
Capital spending in 2021 was $ 31.9 billion, an increase of 18% from 2020.
“This is in line with the company’s belief that significant new investment is needed to keep up with growing demand in response to the significant decline in upstream investment across the global industry,” the company said. I am.
The company also said it could raise its “maximum sustainable capacity” of crude oil to 13 million barrels per day by 2027 and increase gas production by more than 50% by 2030.
Its average hydrocarbon production is equivalent to 12.3 million barrels of oil per day in 2021, which includes 9.2 million barrels of crude oil per day.
“Our strong results are a testament to our financial discipline, our flexibility in evolving market conditions, and our steady focus on our long-term growth strategy,” said Aramco CEO Amin Nacelle. ..
Although the economic situation has “significantly improved,” Nacelle said the outlook for oil demand remains uncertain “due to various macroeconomic and geopolitical factors.”
However, Aramco’s investment plan “is aimed at taking advantage of the long-term growing demand for safer and more sustainable energy than ever before, at a reliable and affordable price.” ..
“We recognize that energy security is a top priority for billions of people around the world, so we continue to increase our oil production capacity, implement gas expansion programs, and increase our liquid-to-chemical capacity. “I am,” added Nasser.
Oil prices rose by more than 50% in 2021 amid surges in demand as economies around the world emerged from the COVID-19 pandemic blockade and restrictions.
In February, after Russian President Vladimir Putin announced the start of military action against Ukraine, oil prices soared above $ 100 a barrel, reaching a 14-year high.
In response, Western countries are calling on major oil producers to increase production amid concerns that energy prices could worsen due to their reliance on Russia’s supply.
According to the US Energy Information Administration, Russia is the third largest oil producer in the world after the United States and China. Russia accounts for 11% of the world’s total market share and the United States accounts for 20%.
According to Eurostat, many EU countries, such as Germany and the Czech Republic, are also highly dependent on Russia’s natural gas, and Russia continued to be the largest supplier of natural gas and oil to the EU in 2021.
Given that Saudi Arabia is by far the largest producer of OPEC, plans to increase production will undoubtedly be welcomed by political leaders.
However, the country also faces criticisms of human rights abuses. Earlier this month, the country executed 81 men “convicted of committing multiple heinous crimes” in one day.
The Ministry of Home Affairs said in a statement that the alleged crimes ranged from joining terrorist groups to retaining “deviant beliefs.”
Saudi Arabia has denied allegations of human rights abuses.
When asked on Sunday whether Aramco would pump more oil to fill the supply market gap due to the ongoing conflict in Ukraine, Nacelle said it would produce according to Saudi Aramco’s Ministry of Energy guidelines, according to Reuters. rice field.
Elsewhere on Sunday, Aramco said it plans to develop a “significant hydrogen export capacity” and become a “world leader in carbon capture and storage technology.”
The company also said it would pay shareholders a $ 18.8 billion dividend in the first quarter of 2022. In addition, due to the strong performance in 2021, it plans to distribute $ 4 billion in retained earnings to investors. Regulatory approval.
Aramco’s stock rose more than 4% early on Sunday to 43.85 riyals, with a value of 8.76 trillion riyals ($ 2.34 trillion).