The state-owned oil company Saudi Aramco plans to sharply increase its investments to boost energy production this year, after it reported its profits to have doubled in 2021 from price surges.
Aramco said on Sunday that it aims to increase its capital expenditure $40-50 billion this year, with further growth expected until around the middle of the decade. That would reflect a 50 percent increase from $31.9 billion last year.
The company’s investment plans include increasing its crude oil “maximum sustainable capacity” to 13 million barrels a day by 2027, along with boosting gas production by more than 50 percent by 2030.
The company benefitted from oil prices surging more than 50 percent in 2021 after mobility restrictions brought by the COVID-19 pandemic created widescale supply chain disruptions. Aramco netted $110 billion in profits last year from $49 billion a year earlier.
More recently, prices broke through $100 a barrel in February, hitting 14-year highs, after Russia invaded Ukraine. Western countries have been urging Saudi Arabia and other producers to increase output to help lower record high prices.
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