Saudi Aramco has 2M b/d in Spare Capacity: CEO

Saudi Aramco has 2M b/d in Spare Capacity: CEO

Saudi Aramco has 2 million barrels per day (b/d) in spare capacity, double the expected OPEC-sanctioned increase in production, CEO Amin Nasser said on June 25, Reuters reported.

Aramco currently produces around 10 million b/d, but has the capacity to produce 12 million b/d.

OPEC agreed on June 22 to increase crude production amid concerns over oil scarcity. The decision comes after 18 months of the OPEC+ agreement to cut their combined output by 1.8 million b/d.

However, OPEC stated that the production increase will remain in compliance with the original January 2017 agreement as Venezuela’s steep and unexpected drop in output has lead to months of underproduction.

“We have a healthy spare capacity … that will be availed to meet additional demand and any interruptions in supply if it happens,” Nasser stated, adding that he expects OPEC’s decision to be implemented “very soon.”

OPEC did not provide specific figures for the production increase, but Saudi energy minister Khalid al-Falih stated that OPEC and non-OPEC producers would pump a combined extra 1 million b/d in the coming months, equivalent to 1% of global supply.

He added that Saudi Arabia will increase output by hundreds of thousands of barrels, but that the exact figures will be decided later.

Russian energy minister Alexander Novak said his country would produce an extra 200,000 b/d in the second half of 2018.

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