Oil Demand to Exceed Pre-Pandemic Levels by 2022-End: Saudi Aramco CEO

Oil demand is currently nearing pre-pandemic levels and will beat it by the end of 2022, the CEO of Aramco said in a media brief in Dammam. Aramco is “optimistic” about demand, which is already improving for some products such as gasoline and diesel. On the other hand, jet fuel is still lingering behind as air travel hasn’t recovered yet completely. “However, we’re seeing a pick-up in jet fuel and we think [that] very soon we will exceed 2019 in terms of total demand,” Amin H. Nasser said. The Dhahran-based company expects more future travelling, which would drive the demand for the airplanes’ fuel. Nasser also highlighted the lack of investments the sector is experiencing. “That lack of investment impacted the growth and the maintenance of some existing fields in different countries [...] and without the right investment it would be very difficult to maintain that [projected] growth,” he explained.

As for the opportunities Aramco is considering, Nasser told Arab News that they have recently made oil and gas pipeline deals, but they are currently considering other investments which optimize their portfolio. He refused to disclose them until they are “mature” enough. In addition, he pointed out that production levels are determined by the government; specifically the Ministry of Energy. These are the result of OPEC and OPEC+ agreements. When asked if dividends are set to rise following Aramco’s strong performance in the previous quarters, Nasser said that these matters are in the board’s hands and will be reviewed when it meets.