The world might face an oil supply shortage following a steep drop in investments and a scarcity of fresh conventional discoveries, Saudi Aramco’s CEO, Amin Nasser, said, according to Reuters.
Although unconventional oil and alternative energy resources are an essential factor to meet future demand, it is very early to assume that they can be developed quickly to replace conventional oil and gas, Nasser added.
“If we look at the long-term situation of oil supplies, for example, the picture is becoming increasingly worrying,” he stated.
“Financial investors are shying away from making much needed large investments in oil exploration, long-term development and the related infrastructure. Investments in smaller increments, such as shale oil, will just not cut it,” Nasser said.
As informed on Zawya, Aramco’s CEO added that the company plans “to invest more than $300b over the coming decade to reinforce our pre-eminent position in oil, maintain our spare oil production capacity, and pursue a large exploration and production program centering on conventional and unconventional gas resources.”