Feb 10 - Saudi Aramco Has 4 Million B/D Spare Crude, Output 12 Million B/D

Source Press
Company Saudi Aramco 
Tags Upstream Activities
Date February 16, 2010

(By Dow Jones)

State oil company Saudi Arabian Oil Co., known as Saudi Aramco, still has 4 million barrels a day of spare crude oil capacity, in addition to its daily production of 12 million barrels, a senior executive from the company told reporters Tuesday.

"We still have 4 million spare capacity--although in the current climate this is very expensive to maintain--but it's a reflection of global responsibility to maintain [a] reliably supplied market at all times," said Dawood Al-Dawood, Aramco vice-president for marketing, supply and joint-venture coordinator, on the sidelines of the International Petroleum Week conference lunch in London.
"Recovery [from recession] is ensuing, [and] worldwide demand growth is expected to resume longer term," Al-Dawood said. "Emerging markets, in particular India and China, will be part of the rebound in growth."

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The challenges will be above ground, not beneath it," he added, saying concerns over energy security could bring supply crunches and price spikes.

The company will need to spend $120 billion over the next five years to fulfill its expansion plans, he said.

He said he expects to see the company's share of global refining capacity increase from 2.2 billion barrels a day to 3.2 billion barrels a day.

Al-Dawood outlined a number of downstream ventures the company continues to participate in, including the Fujan refinery, with investment from China's Fujan province, and Exxon Mobil Corp. (XOM). The refinery has now ramped up to maximum output of 240,000 barrels a day.

It also a 50-50 partner in the Motiva Port Arthur Refinery in Texas, with Shell Oil Products U.S. Al-Dawood said the plan is to build throughput at the refinery to 600,000 barrels a day from the current 275,000 barrels a day, which would establish it as the biggest in the U.S.

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