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Saudi Aramco CEO: “Not losing any sleep over ‘peak oil demandʼ or ‘stranded resourcesʼ” and the reality of energy transition.

Production

Full Text of Remarks Here

Basically it boils down to this…

Neither regulatory malfeasance, nor greenie-weenie unicorn wishes nor dimwitted fossil fuel divestment protests will bring down the oil industry or fossil fuels in general. The world will need petroleum, natural gas and coal well-into the 21st century. Misguided efforts to deny access to capital and resources now, will only increase the cost to energy consumers later.

On another note, DeGolyer and MacNaughton (D&M) recently completed their comprehensive audit of Saudi Aramco’s proved oil & gas reserves and actually increased them…

Wednesday 1440/5/3 – 2019/01/09

Independent certification of the Kingdom’s oil and gas reserves within the Saudi Aramco’s concession area results in upward revision of the Kingdom’s overall reserves, and confirms highest standard of governance

Riyadh, January 9, 2019, SPA — Today, the Ministry of Energy, Industry and Mineral Resources of Saudi Arabia has announced an upward revision to the Kingdom’s proven oil and gas reserves, following an independent certification of oil and gas reserves in Saudi Aramco’s concession area conducted by leading consultants DeGolyer and MacNaughton (D&M).

The Kingdom previously announced that oil and gas reserves as of 31 December 2017 were 266.3 billion barrels of oil and 307.9 trillion standard cubic feet of gas respectively. Of these, the estimated proven oil and gas reserves in Saudi Aramco’s concession area were 260.9 billion barrels of oil and 302.3 trillion standard cubic feet of gas. Following the certification, Saudi Aramco’s concession area oil reserves at year-end 2017 would have been 2.2 billion barrels higher or 263.1 billion barrels of oil and 319.5 trillion standard cubic feet of gas.

In addition to Saudi Aramco concession area reserves, the Kingdom also owns half of the oil reserves in the Partitioned Zone jointly owned by Saudi Arabia and the State of Kuwait. The Kingdom’s share of the Partitioned Zone oil reserves (onshore and offshore combined) is 5.4 billion barrels and the corresponding gas reserves is 5.6 TCF.

So, including the D&M revision of oil reserves in the Saudi Aramco’s concession area, the Kingdom’s total proven oil and gas reserves as of year-end 2017 would have been about 268.5 billion barrels of oil and 325.1 trillion standard cubic feet of gas, respectively.

[…]

Saudi Press Agency

 

D&M is one of the most highly respected independent consulting firms engaged in resource and reserve evaluation.  All publicly traded oil companies are required to have their proved reserves audited by companies like D&M.

On another Aramco note, they expect to pump the last barrel of crude oil ever produced on Earth…

Saudi Arabia: We’ll Pump The World’s Very Last Barrel Of Oil

By Tsvetana Paraskova – Jan 23, 2019, 6:00 PM CST

Saudi Arabia isn’t buying the peak oil demand narrative.

OPEC’s largest producer continues to expect global oil demand to keep rising at least by 2040 and sees itself as the oil producer best equipped to continue meeting that demand, thanks to its very low production costs.

Saudi Arabia will be the one to pump the last barrel of oil in the world, but it doesn’t see the ‘last barrel of oil’ being pumped for decades and decades to come.

“I don’t see peak [oil] demand happening in 10 years or even by 2040,” Amin Nasser, president and chief executive officer of Saudi oil giant Saudi Aramco told CNN Business’ Emerging Markets Editor John Defterios on the sidelines of the World Economic Forum in Davos this week.

“There will continue to be growth in oil demand … We are the lowest cost producer and the last barrel will come from the region,” Nasser told CNN.

[…]

Saudi Aramco’s cost of production is just $4 a barrel, al-Falih later said in a news conference, as carried by Reuters.

Saudi Arabia may need oil prices higher than $80 a barrel to balance its budget because most of the income comes from oil. Yet, the Kingdom has what is probably the world’s lowest cost of pumping one barrel of oil.

[…]

Oil Price Dot Com

 

While Mr Nasser may not be “losing any sleep over ‘peak oil demandʼ or ‘stranded resourcesʼ”, he might want to do something about that G&A problem… $4/bbl lifting cost and $76/bbl overhead… 😉

WUWT



4 Comments on "Saudi Aramco CEO: “Not losing any sleep over ‘peak oil demandʼ or ‘stranded resourcesʼ” and the reality of energy transition."

  1. Davy on Sun, 27th Jan 2019 6:20 am 

    “US Energy Information Administration: Renewables To Be Fastest Growing Source Of Electricity Generation In Coming Years”
    https://tinyurl.com/ycglksez

    “EIA expects non-hydroelectric renewable energy resources such as solar and wind will be the fastest growing source of U.S. electricity generation for at least the next two years. EIA’s January 2019 Short-Term Energy Outlook (STEO) forecasts that electricity generation from utility-scale solar generating units will grow by 10% in 2019 and by 17% in 2020. According to the January STEO, wind generation will grow by 12% and 14% during the next two years. EIA forecasts total U.S. electricity generation across all fuels will fall by 2% this year and then show very little growth in 2020. EIA projects that the share of total U.S. electricity generation produced by all renewables other than hydropower will increase by three percentage points during the next two years, from 10% of total generation in 2018 to 13% in 2020. This projected growth is a result of new generating capacity the industry expects to bring online. About 11 gigawatts (GW) of wind capacity is scheduled to come online in 2019, which would be the largest amount of new wind capacity installed in the United States since 2012. EIA expects electricity generated from wind this year will surpass hydropower generation. An additional 8 GW of wind capacity is scheduled to come online in 2020. The share of total U.S. generation from wind is projected to increase from 7% in 2018 to 9% in 2020. Solar is the third-largest renewable energy source in the United States power sector, having surpassed biomass in 2017. The U.S. electric power sector plans to add more than 4 GW of new solar capacity in 2019 and almost 6 GW in 2020, a total increase of 32% from the operational capacity at the end of 2018. Because of this increase, solar is forecast to contribute slightly more than 2% of total utility-scale generation in 2020.”

  2. Cloggie on Sun, 27th Jan 2019 7:09 am 

    Davy following the European lead and jumping on the renewable band-wagon after fighting it tooth-and-nail earlier.

    LOL

  3. majece majece on Tue, 29th Jan 2019 9:18 am 

    It’s clear for me that advices from https://college-homework-help.org/blog/case-brief might be helpful for students. You can use it in order to write high quality case brief

  4. Here we go again on Wed, 30th Jan 2019 8:56 am 

    Good for them….when their desert turns to a furance due the global warming they will worry and lose sleep

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