Saudi Arabia Halts Oil Expansion for Energy Transition, Not Demand Concerns
Prince Abdulaziz bin Salman, Saudi Arabia's Energy Minister, clarified that the nation's surprising halt to oil production capacity expansion stems from the energy transition, not declining demand forecasts. This move aligns with Aramco's shift towards becoming an "energy company" instead of solely focusing on hydrocarbons.
Saudi Arabia abandons plans to increase oil production capacity from 12 million barrels per day (bpd) to 13 million bpd.
Energy transition, not weakening demand, drives the decision, according to Prince Abdulaziz.
Aramco transitions towards becoming an "energy company", investing in diverse energy sources.
Speculation about declining demand, competition, and price manipulation dismissed.
Halt saves Aramco billions, potentially supporting future diversification projects.