OPEC’s largest crude oil producer, Saudi Arabia, expects oil demand to be rising until at the least 2040, and thinks that it’s the most competent oil producer to proceed assembly this demand development.
Saudi Arabia might be the one to pump the last barrel of oil in the world, however it doesn’t see the ‘last barrel of oil’ being pumped for many years and many years to come back.
“I don’t see peak [oil] demand happening in 10 years or even by 2040,” Amin Nasser, president and chief government officer of Saudi oil big Saudi Aramco instructed 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 instructed CNN
For a number of years, Nasser has been saying that peak oil demand is nowhere in sight, that petrochemicals will drive oil demand development by 2050, and that each one the ‘peak oil demand’ and ‘stranded resources’ speak is threatening an orderly vitality transition and vitality safety.
Saudi Arabia—which has simply introduced that its large oil reserves are barely increased than beforehand estimated—appears to diversify its financial system away from heavy dependence on crude oil, however one of the objectives of its Vision 2030 diversification plan is to make use of much less oil in home energy technology to unencumber extra barrels for exports.
As the world’s prime crude oil exporter, Saudi Arabia won’t be freely giving simply its crown and the geopolitical clout that comes with it.
The Saudis have the two key substances to proceed pumping oil until kingdom come—large reserves and low manufacturing prices.