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The Global Oil And Gas Industry Needs 20 Trillion US Dollars In Investment In The Next 25 Years
Mar 07, 2018

Amin Nasser, chief executive of Saudi Aramco (Saudi Aramco), said on Tuesday that the global oil and gas industry needs more than $20 trillion in investments over the next 25 years to meet anticipated growth in demand, and to make up for the naturalness of developed oil fields. decline.


At the CERA Week conference held in Houston, Nasser said that since the drop in oil prices from 2014 to 2016, the industry has already lost $1 trillion in investment.


Nasser said that future investment "only if investors are convinced that oil is allowed to compete in a fair competitive environment, the value of oil is actually much higher than it is now, and the oil will have a promising future in the foreseeable future. ."


He said: "That is why we must abandon the idea that the world can operate without a proven and reliable source. We must challenge the false assumption that the alternative will penetrate the market."


He pointed out that 99% of passenger cars on the road are still using internal combustion engines, as are hybrid vehicles. He said that the power of electric vehicles still comes from the conversion of power, and power generation is still dominated by coal, especially in markets such as India and China.


Nasser said that even if electric vehicles are now growing strongly, the increase in demand in the petrochemical market in the next 20 years will also require more investment and crude oil. He pointed out that it is conservatively estimated that an additional 20 million barrels of crude oil will be needed every day in the world in the next five years.


He said that despite the large fluctuations in oil prices and the forecast that shale oil production will continue to rise, he believes that the growth of the oil market fundamentals and future demand will be healthy.


Nasser simply mentioned Saudi Aramco's listing plan, saying that it was "progressing very smoothly," but the company's shareholder, the Saudi government, will eventually have to decide when and where it will go public.


It is expected that the company will conduct initial public offerings (IPOs) in China, but there may be a secondary listing in three markets: New York, London and Hong Kong. According to two informed sources, Hong Kong is now more and more likely.