Peak Oil is You

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Page added on September 29, 2009

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One on One with Aramco CEO Khalid al-Falih

SUSIE GHARIB: Oil prices rose today to $66.84 a barrel. In New York trading, November crude futures jumped $0.82. Now a lot of that oil comes from Saudi Arabia, specifically Aramco. That’s the biggest oil company in the world. Recently I met with Aramco CEO Khalid al-Falih in Saudi Arabia and began by asking him whether worldwide demand for oil these days is up or down.

KHALID AL-FALIH, CEO, SAUDI ARAMCO: Oil demand continues to be very sluggish in the west, in the U.S. and North America and Europe. We see an uptick in China, but not significant to offset the demand loss that we saw with economic and financial crisis the last year or so. It will take time to make up for the millions of barrels of lost demand that we experienced, but ultimately it will come.

GHARIB: One of the biggest worries for American consumers and American businesses is that the world is going to run out of oil. What is your response to that?

AL-FALIH: The world has nine 10 trillion barrels of oil, both conventional and unconventional, that needs to be — that are available for science and technology and industry and global society to exploit in a responsible way over a long period of time.

GHARIB: The fear is discoveries are not going to keep up with production. It’s just a matter of time that the supplies are just going to –

AL-FALIH: If we only look at history, if we look at history, the industry has been able to replace all of the oil produced and more. The recoverable oil reserves of the world has been growing. Even recently we certainly at Saudi Aramco, has been, although we are the largest producer and exporter of oil, we have been more than replacing our production and our expectations from technology, both in discovery and recovery oil are very, very bullish.


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