Saudi Aramco plans to increase its oil production capacities despite investment cuts

The oil production capacities of Saudi Aramco should increase in up to 1 million barrels per day. Even though the company plans investment cuts, there should still be enough capital for expanding oil production capacities.

Saudi Aramco plans to increase its oil production capacities despite investment cuts

As such, oil production capacities could rise from current 12 to 13 million of barrels per day. Yet, Saudi Aramco Executive Director Amin Nasser said on Sunday that capital expenses should significantly drop against the original plans, which were expected to be in the volume of $40 to $45 million. 

Even though we are proceeding with increasing our maximum sustainable capacity, it should not have a major impact on capital in 2021,Nasser added. The expenses are expected to be at the lower end of a $25 billion to $30 billion range. The capital saved on investment this year might be used for investment in 2021, and the planned investment capacity balance sheet would remain.

Moreover, Saudi Aramco probably prepares itself for recovery in oil production demand, which could come together with economic recovery. According to many predictions, economic recovery should take place during 2021.

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