Aramco CEO: Global energy markets lost 3 billion barrels since Iran conflict
Amin Nasser says the Iran war has caused an unprecedented loss of 3 billion barrels in global energy supplies, warning of low oil inventories.
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Saudi Aramco President and CEO Amin Nasser revealed that global energy markets have lost around 3 billion barrels of supply since the onset of the crisis linked to the Iran war, describing its impact as unprecedented and warning that markets entered the crisis with oil inventories below required levels.
In an interview with Al Arabiya Business, Nasser said oil prices could have reached even higher levels during the crisis, noting that the East-West Pipeline was one of the factors that helped prevent a sharper rise. He expects oil demand to grow by 3 million barrels per day after the crisis ends, driven by recovering consumption and restocking of inventories.
As part of the company’s preparations to manage supply disruptions, Nasser said Aramco is working to increase the East-West Pipeline’s capacity to 10 million barrels per day, alongside engineering studies for new oil export routes.
He noted that the company currently has three export routes: the Strait of Hormuz, Bab al-Mandab, and Sidi Kerir, and is working to double its storage capacity outside the Kingdom, particularly in Asia.
On Aramco’s crisis response, Nasser confirmed that 90% of the materials the company needed during the crisis were locally manufactured, explaining that teams begin assessing damage and transporting repair materials even before fires are extinguished.
Nasser praised what he described as the heroic role of the company’s workforce during the crisis, highlighting their efforts in managing damage and restoring operational capacity.
On gas, Nasser said Aramco aims to increase gas production by 80% between 2021 and 2030, confirming there are no delays in completing the second phase of the Jafurah project, which is scheduled for completion in 2027.
He added that the company is currently building its third gas network and is considering a fourth, noting that gas exports will depend on first meeting domestic demand.
Regarding technology and innovation, Nasser said Aramco holds the largest number of patents among energy companies, and that the value generated from technology over the past two years reached $11.3 billion.
He added that Aramco’s oil production cost has remained steady at $3 per barrel for decades, attributing this to the role of technology in supporting production efficiency.