Saudi Arabia will not increase its oil production

Saudi Arabia has ordered energy giant Aramco to keep its oil production capacity at 12 million barrels a day, abandoning a planned increase, AFP reported.

"Aramco said it has been instructed by the Ministry of Energy to maintain its maximum sustainable capacity (MSC) at 12 million barrels per day" instead of increasing it to 13 million barrels per day, the company said.

"The company will update its capex forecast when it announces its full-year 2023 results in March," the company said.
Saudi Arabia is the world's largest exporter of crude oil, and Aramco is the pearl of the Gulf kingdom's economy.
Aramco's profits are expected to fund Crown Prince Mohammed bin Salman's sweeping economic and social reform program known as Vision 2030, which aims to lay the foundations for a possible future after the end of the oil market.
Riyadh announced the planned increase in production capacity in October 2021, the same month it pledged to achieve net zero carbon emissions by 2060, prompting strong skepticism from environmental activists.

The Saudi energy giant has committed to achieving "operational zero carbon emissions" by 2050.

This applies to emissions that are produced directly by Aramco's industrial sites, but not to the carbon dioxide that is produced when customers burn Saudi oil in their cars, power plants, and furnaces.

In the run-up to the COP28 climate change talks in Dubai last year, Saudi Arabia was among the most vocal supporters of more investment in fossil fuel production, saying it was needed to combat energy poverty in regions such as Africa.
After a series of oil supply cuts starting in October 2022, Saudi Arabia's daily output stands at about 9 million barrels per day, far below its capacity of 12 million barrels per day./BGNES