Riyadh, Saudi Arabia – Saudi Aramco CEO Amin Nasser confirmed on Tuesday that the ongoing geopolitical crisis in the region continues to exacerbate the largest supply shock in human history. He explained that the world has lost more than 2.6 billion barrels of oil as a result of this crisis. That is oil that was intended for various vital global industries.
Al-Nasser explained that Aramco’s East-West pipeline, along with the world’s strategic petroleum reserves, played a vital role in mitigating the supply shock. As a result, this reduced the net actual supply shortfall to approximately 1.8 billion barrels. He emphasized that the global refining system is under unprecedented pressure. He noted that current trade flows through the Strait of Hormuz are ten times higher than pre-conflict levels. He also asserted that the world will continue to lose more than 100 million barrels of oil for every week this vital waterway remains closed.
Al-Nasser added that even assuming the Strait of Hormuz were to reopen today, replenishing depleted oil reserves would take 12 to 18 months. He explained that the flow rate would be 2.1 million barrels per day. In terms of operations, he affirmed that Aramco continues to enhance its resilience through the East-West pipeline. He also stated that the company has long successfully managed risks with high effectiveness. He added that the government is addressing these risks decisively. He emphasized that this has never precluded the option of using the Bab el-Mandeb Strait.
Al-Nasser revealed that there was no tangible impact, either operationally or financially, as a result of the targeting of any of the company’s vital facilities. He confidently asserted that Aramco’s ability to restore its assets and respond immediately to any attacks, regardless of their scale, surpasses that of its counterparts in the global energy sector by six times.
He concluded by emphasizing that the company will continue to make the most of all available export routes, including the Bab el-Mandeb Strait, the Suez Canal, the SUMED pipeline, and the Strait of Hormuz. He also noted that all possible strategic options are being studied. These include the East-West pipeline expansion project, to enhance its future export capacity.
