Saudi Aramco CEO Warns of Potential Global Oil Shortage
- Supply Concerns: Amin Nasser, CEO of Saudi Aramco, warned that the world could face a future oil shortage due to underinvestment in exploration and production over the past decade.
Updated Analysis
Nasser highlighted that current investment levels in upstream oil are insufficient to meet future demand. He noted that U.S. shale production, which accounted for the majority of growth over the last 15 years, is expected to plateau and eventually decline, increasing the risk of a supply gap. He stressed that ongoing strategic exploration and production spending by Aramco is crucial to ensure long-term stability.
Key Highlights
- Declining Investments: Global oil and gas exploration investments are projected to decrease to approximately $420 billion in 2025, the first decline since 2020.
- Shale Production Plateau: Nasser warned that 80–90% of past production growth came from shale, which is unlikely to continue growing over the next 15 years.
- Strategic Spending: Aramco continues to invest $1–2 billion annually in exploration to maintain supply security.
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FT — Saudi Aramco CEO Warns of Global Oil Shortage
Strategic & Market Snapshot
This warning underscores long-term risks in global oil supply and highlights the importance of maintaining investment in exploration and production. Analysts suggest that unless upstream spending increases, future oil demand could outpace supply, potentially leading to price volatility and increased market uncertainty.
