Saudi Aramco has announced plans to invest US$40bn annually in Saudi Arabia’s energy sector for the next ten years to maintain oil production and double gas output in the Kingdom

Al Falih, chief executive of Saudi Aramco, said, ”To meet forecast demand growth and offset global output decline, our industry will need to add close to 40mn bpd of new capacity in the next two decades. Although our investments will span the value chain, the bulk will be in upstream and offshore with the aim of maintaining our maximum sustained oil production capacity at 12mn bpd, while doubling our gas production as well.”

According to the US Energy Information Administration, Saudi Arabia ranks fifth in the world in natural gas reserves with 8.2bn cu/m of proven reserves and is the eighth largest producer in the world.

The Kingdom has decided to maintain an ambitious rate of investment in its hydrocarbon sector to meet the global demand over the next decade, according to a leading Saudi Arabian oil executive. This decision was reportedly taken after witnessing a decline in oil prices this year due to turmoil in major oil producing nations like Libya and Iraq. In addition, the demand has for oil has decreased from Europe and China.