Saudi Aramco CEO Points to Energy Future

By George Backwell
Friday, September 05, 2014
Khalid A. Al-Fali: Photo Aramco

Speaking at this year’s Offshore Northern Seas (ONS) Conference and Exhibition, Khalid A. Al-Falih, Saudi Aramco president and CEO, addressed the challenges facing the industry and gave insights into Saudi Aramco’s strategy for turning these into opportunities, informs the Middle East energy major.

In his speech, Al-Falih outlined some of the chief challenges that major producers such as Saudi Aramco face, including rising project costs, critical manpower shortages, global economic weakness and political turmoil in many oil producing regions, including Africa, the Middle East and the former Soviet Union. These challenges must be faced with “prudent caution,”

Al-Falih said, focusing on long-term strategies for meeting the growing global need for energy and enhancing “our industry’s resilience to the kinds of shocks, surprises and difficulties” the industry currently faces.

The industry’s greatest challenge, Al-Falih said, is meeting its primary purpose of supplying energy to the world, where global energy demand is set to grow by more than a third from the current level. To do that, “our industry will need to add close to 40 million barrels per day of new capacity in the next two decades,” Al-Falih said. “To put that figure into perspective, that’s equivalent to approximately 30 Norways or 15 times America’s current unconventional oil production.”

We are convinced that innovation and cutting-edge technology are the key strategic enablers of our current success and future competitiveness, which is why we are tripling our R&D manpower and increasing our R&D funding five-fold.

Saudi Aramco’s strategy for meeting that growing demand is to invest $40 billion a year over the next decade to keep steady the company’s maximum sustained oil production capacity at its current 12 million barrels a day level, in addition to doubling its current gas production levels. Much of this capital will go into offshore projects, Al-Falih said, both in large-scale projects similar to its Manifa project in the Arabian Gulf, and more recent offshore exploration in the Red Sea and Midyan fields.

“Each company, naturally, will choose its own course, given its unique capabilities and objectives,” Al-Falih said. “At Saudi Aramco, we have realized the major shifts in our landscape and have undertaken a transformative and comprehensive change process that leverages innovation and technology, talent, agility and resilience, and our business investments and portfolio expansion, in addition to strengthening our proactive role in the broader development of the Kingdom of Saudi Arabia.
“We are convinced that innovation and cutting-edge technology are the key strategic enablers of our current success and future competitiveness, which is why we are tripling our R&D manpower and increasing our R&D funding five-fold,” Al-Falih said.

By setting a company goal of becoming leaders in technological innovation in a dozen domains, Saudi Aramco is on target for increasing its oil recovery to 70 percent, allowing it to add more than 100 billion barrels of oil resources to its already large portfolio. Al-Falih also pointed to major advancements in drilling, which is vital to realizing Saudi Arabia’s significant unconventional gas potential.

The CEO also emphasized that the company continues to diversify across the value chain and increase its global footprint. “Even as other companies are retrenching, we will be investing to build a vertically and horizontally integrated, top-tier refining, marketing, petrochemicals, lubes and power business — with much of that expansion coming in the form of joint ventures with other leading global firms at home and abroad,” Al-Falih said.

The  speech is available at: http://bit.ly/VNR5n4
 

Maritime Reporter May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Wärtsilä wins BWMS Order for 3 Vessels

Wärtsilä has received another important order for its Ballast Water Management Systems (BWMS). Three new container ships being built for a major European shipping

New MD for Glander Int'l Bunkering (India)

Glander International Bunkering is proud to announce that Ajay Menon has been appointed as the Managing Director of Glander International Bunkering (India) Private Limited.

First Damen Twin Axe for Offshore O&G

To develop its large fleet, Groen Offshore, Guard & Support has selected the first Damen Twin Axe Fast Crew Supplier 2610 to be customised with Offshore Oil & Gas standby capabilities.

Finance

Superyacht Marina Planned at San Juan, Puerto Rico

Puerto Rico Ports Authority issues RFP for Marina District. The project envisions a superyacht marina and dry dock maintenance, repair and overhaul facility

Tanker Demand Picks-up in Canada

Canada’s role in the oil industry has changed dramatically in recent years driven by synthetic crude oil production in the oil sands of Alberta.   New plans for Energy East,

CNPC Eyes Myanmar for LNG Terminal

China's biggest oil and gas company China National Petroleum Corp.(CNPC ) has expressed interested in  a terminal in Kyaukphyu in Myanmar  to receive imported Liquefied natural gas (LNG).

Energy

New MD for Glander Int'l Bunkering (India)

Glander International Bunkering is proud to announce that Ajay Menon has been appointed as the Managing Director of Glander International Bunkering (India) Private Limited.

ARENA Funding Helps CSIRO set-up New Solar Lab.

CSIRO is set to increase confidence in large scale solar by more accurately predicting how different solar photovoltaic (PV) systems will perform on Australian shores.

Hoegh LNG Bags FSRU Deal in Chile

Oslo-based Höegh LNG said it has signed an Floating Storage and Regasification Unit (FSRU)contract with Chilean Octopus LNG for the Penco-Lirquén LNG import terminal to be located in Concepción Bay,

Fuels & Lubes

New MD for Glander Int'l Bunkering (India)

Glander International Bunkering is proud to announce that Ajay Menon has been appointed as the Managing Director of Glander International Bunkering (India) Private Limited.

CAT’s New Dual Fuel Engine M 4G DF

At the beginning of 2015 the exhaust limit values for sulfur oxides (SOx) grew ever tighter in emission controlled areas. And with the start of 2016, nitrogen oxides

Natural Gas Articulated Conduit System Patented

Elliott Bay Design Group (EBDG) announced that long-time partner Moran Towing Corporation has been granted US Patent 8,967,174 for "Articulated conduit systems

People in the News

SITC Inks Deal with Qingdao Port

SITC International signed a strategic cooperation agreement with Qingdao Port International Co., Ltd. in Qingdao yesterday in order to further strengthen the strategic

Sea Shepherd Global Launches Operation Siracusa

Following on from the incredibly successful 2014 campaign, Sea Shepherd Global launches Operation Siracusa 2015. Led by Sea Shepherd Italia, the campaign aims

UNOLS Seeks Fleet Improvement Committee Chair

The University-National Oceanographic Laboratory System (UNOLS) informs it is seeking nominations to fill a Fleet Improvement Committee (FIC) Chair position.   The position,

Middle East

Iran, Oman Discuss Yemen War, Settle Maritime Borders

Iran's Foreign Minister Mohammad Javad Zarif discussed how to advance Yemeni peace efforts with his Omani counterpart on Tuesday, Iranian media reported, on a visit

ASRY in Maritime Deal with Relay

UK-based engineering firm signs service agreement to provide direct services to vessels in ASRY, expanding the list of the yard’s onsite specialist contractors.

Baltic Mercur II makes maiden voyage to Antwerp

This week Atlantic Ro-Ro Carriers (ARRC) celebrates the maiden voyage of the Baltic Mercur II via the port of Antwerp as part of their regular transatlantic service to the US Gulf.

 
 
Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2117 sec (5 req/sec)