Saudi Aramco will likely maintain high production through May, CEO says
Aramco CFO Khalid al-Dabbagh said that he is "very comfortable" with an oil price of $30 per barrel
Saudi Aramco will likely maintain its higher output levels for April through May, noting that it is "very comfortable with a $30 per barrel price level."
Saudi Aramco announced that it would increase its output in April to 12.3 million barrels per day, after OPEC+ talks fell through, starting an oil price war and fight for market share.
“In a nutshell, Saudi Aramco can sustain the very low price and can sustain it for a long time,” CEO Amin Nasser said in an earnings call on Monday. “For the production in May…I doubt it would be any different from next month."
He said that the growth in production and exports would help the company despite falling oil prices.
Aramco's maximum sustained output capacity is 12 million barrels per day, so the company will draw 300,000 barrels per day from its stocks to help bolster its output. Nasser noted that "Our maximum capacity is sustainable for one year without the need for any additional building. It does not require any additional capital."
The Saudi energy ministry told Aramco to increase its maximum sustained capacity to 13 million barrels per day, although no outline or long-term plan was announced.
Saudi Aramco reported a 20.6% decrease in its net income for 2019 to $88.2 billion, compared to $11.1 billion in 2018.