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
 


People & Company News

MPA Appoints Koji Sekimizu as Distinguished Visiting Fellow

The S. Rajaratnam School of International Studies (RSIS) and the Maritime and Port Authority of Singapore (MPA) have appointed former Secretary-General of the

MN100: Klüber Lubrication NA LP

The Company: Klüber Lubrication is one of the world’s leading manufacturers of specialty lubricants, offering high-end tribological solutions to virtually all industries and markets worldwide.

Grand Bahama Shipyard Adds Four Executives

Grand Bahama Shipyard Limited (GBSL), a Caribbean shipyard providing retrofit, refurbishment and revitalization to cruise and commercial vessels, has added four

Finance

European Owners Lead in Buying Up Secondhand Tonnage

With European owners leading the pack in buying up vessels, the sale and purchase market appears to have been notably active in recent years, reveals Clarkson Research Services Limited.

Monjasa Bags Credit Facility from Société Générale

Danish bunker fuel supplier and shipping firm Monjasa has signed a credit facility with French bank Société Générale for USD 80 million.    A statement from

Hanjin Shipping to Submit Self-Rescue Plan

South Korea’s Hanjin Shipping is planning on submitting a self-rescue plan to creditors this week to stave off bankruptcy by Aug. 25, reports Korea Herald quoting local media.

Energy

South Africa Workshop Promotes Ship Energy Efficiency

An International Maritime Organization (IMO) workshop is raising awareness of the Organization’s regulatory regime dealing with improving energy efficiency and

MISC Enters Thai Offshore O&G Market

Energy related maritime solutions and services provider MISC Berhad (MISC) has made inroads into Thailand’s offshore oil and gas market for the first time.

Pressure Mounting on VLGCs Rates - Drewry

A wave of cargo cancellations from the US is putting additional pressure on VLGC rates, according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry.

Fuels & Lubes

MN100: Klüber Lubrication NA LP

The Company: Klüber Lubrication is one of the world’s leading manufacturers of specialty lubricants, offering high-end tribological solutions to virtually all industries and markets worldwide.

MN100: FloScan Instruments, Inc.

The Company: FloScan designs and manufactures Fuel Monitoring Systems for use on a wide range of diesel powered commercial vessels on every continent including ocean-going,

Tanker Market: ‘New Normal’ Drives Downbeat Summer Sentiment

The tanker market is forecast to see challenging conditions with technical and structural factors impacting earnings, according to independent research and consultancy

People in the News

MPA Appoints Koji Sekimizu as Distinguished Visiting Fellow

The S. Rajaratnam School of International Studies (RSIS) and the Maritime and Port Authority of Singapore (MPA) have appointed former Secretary-General of the

Grand Bahama Shipyard Adds Four Executives

Grand Bahama Shipyard Limited (GBSL), a Caribbean shipyard providing retrofit, refurbishment and revitalization to cruise and commercial vessels, has added four

Connected Ships, Smart Data, Cybersecurity to Feature in SHIPPINGInsight

Ship connectivity, smart data and cybersecurity will be central themes on the agenda at the fifth SHIPPINGInsight Fleet Optimization Conference & Exhibition. The

Middle East

Cathelco MGPS for Latest Lamprell-built Jack-up

Cathelco will provide a marine growth prevention system (MGPS) for the latest in a series of jack-up drilling rigs to be built by Lamprell, the UAE based  leading provider of fabrication,

Riyadh MOU PSC CIC on Pilot Transfer Arrangements

Six (6) countries (Bahrain, Kuwait, Qatar, Saudi Arabia, Oman and UAE) of the Riyadh MoU in the Gulf Region are planning the following PSC Concentrated Inspection

Nakilat Upgrades VSAT Service for LNG/LPG Fleet

Nakilat, the shipping arm of Qatar’s liquefied natural gas sector, has entered into a contract with Global Eagle Entertainment Inc.’s Emerging Markets Communications

 
 
Maritime Contracts Maritime Standards Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Electronics 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: 0.1219 sec (8 req/sec)