GLOBAL CLIMATE DEBATE

Saudi Aramco Head Urges Oil Industry to Invest in Future

Supplying enough oil to meet the demand of a burgeoning world population with aspirations to better lifestyles is a challenge too big for any one oil company, says the President and CEO of Saudi Aramco, Khalid al-Falih.

Speaking at IHS CERAWeek in Houston today, al-Falih said meeting world needs is an "obligation" of the entire industry, and "it is essential that all players step up their game."

He and other speakers -- including Secretary of State Hillary Clinton by video message -- stressed that even with measures to cut greenhouse gas emissions, fossil fuels will remain the dominant fuel source in the near-term.  Al-Falih said it's important to be "pragmatic" and not overpromise results for new technologies, or the world will have "a green bubble" and will lose faith in those technologies when it bursts.

He said Saudi Aramco has invested $62 billion over the last five years in expanding its oil production capacity for the long-term, despite the sharp downturn in consumption in 2008.  He said the kingdom thought it important to follow through with promised investment to show the world it is a dependable supplier.

He said the company plans another $90 billion in investments in the coming five years, more than half of it in developing natural gas reserves.  Investment will be primarily in northern Saudi Arabia and in promising formations in the Red Sea, he said, which are believed to hold both oil and gas.

Saudi Aramco is the world's largest producer of oil, able to pump some 12 million barrels a day, he said.