ALBAWABA – At the end of January, Aramco released a statement saying that Saudi Energy Minister Abdulaziz bin Salman instructed the world’s largest oil exporter to halt its previously announced plans to expand its production from 12 million barrels per day to 13 million by 2027, which came as a shock to investors according to CNBC, causing controversy regarding Saudi Arabia’s look for the future of energy sources.
On Monday, the minister gave an explanation for the reasoning behind the decision at the International Petroleum Technology Conference in Dhahran, explaining that the investment was postponed due to Aramco’s transition towards green energy, saying “transitioning means that even our oil company, which used to be an oil company, became a hydrocarbon company. Now it’s becoming an energy company.”
He also drew a comparison of old and current energy markets, saying that energy securities between the 70s and 90s were dependent on oil, but future energy issues would be revolving around renewables instead of oil, stressing that Aramco is involved in the petrochemical, renewable energy, oil, and gas industries.
On the subject of emergency capacity, the minister pointed out that in case of a shortage, a solid amount of spare capacity is available, adding that the decision by Aramco, which aims by 2050 to reach operational net-zero emissions, was made after an in-depth review of market conditions and was not reached recklessly.
