Saudi Aramco Expects Crude Oil Prices to Rise

Published at 02:45PM - 02/11/16

The President and Chief Executive Officer (CEO) of Saudi Aramco Amin H. Nasser is expecting crude oil prices to rebound in the first half of next year, media sources reported.

According to the executive, demand should also remain relatively high, despite the recent low price streak.

“The gap between supply and demand is closing… Our anticipation now is that it will be balanced by the first half of 2017. That will see an adjustment upwards in terms of prices,” the CEO said at a conference.

Saudi Aramco Expects Crude Oil Prices to Rise

According to Nasser, climate change is transforming the global energy system, bringing the need for alternatives to attend to the growing global demand.

“Pragmatism demands that sufficient investments must continue to be made in oil and gas during the long transition,” he was reported as saying.

Saudi Aramco Expects Crude Oil Prices to Rise
Saudi Aramco CEO Amin Nasser

He added that Saudi Aramco will have a key role in this transition, with the aim to achieve 9.5 gigawatts of power from renewable energy by 2030.

Unconventional gas is also a key investment area for the Saudi company, with plans to gradually increase production in the end of next year.

Saudi Aramco to Enter Malaysia, US

As well as this, the company is looking to further investment in the downstream sector, namely in Indonesia, China and Malaysia.

Offshore drilling is also a key investment area, namely through the creation of joint ventures, he told reporters.

Aramco recently signed a JV deal with Nabors Industries to equally own, manage and operate onshore drilling rigs in Saudi Arabia, with operations scheduled to begin in the second quarter of 2017.

In Malaysia, it has been reported that Saudi Aramco could soon enter the country and become a 50:50 partner in a project valued at US$21 billion (£17 billion) comprised of a refinery, petrochemical plants and other related facilities.