Amin Nasser, the CEO of Saudi Aramco, and Sheikh Nawaf Al-Sabah, his counterpart at Kuwait Oil Company, warned at the "Energy Information Forum" that other countries must share in the costs arising from the Iran war and related infrastructure investments. The two CEOs noted that ongoing conflicts have caused significant damage to oil and gas infrastructure, greatly increasing the need for new large-scale investments.
The Necessity of Investment in Oil and Gas Infrastructure
According to Nasser, no country should face the existing challenges in this area alone. He emphasized that oil and gas infrastructure is recognized as a collective necessity for producers and consumers. Given Europe's urgent need for fuel storage and supply, Sheikh Nawaf pointed to European countries' investment in refined fuel storage infrastructure, stating that Kuwait could act as one of the main suppliers of these fuels.
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Future Challenges of the Oil Market
Nasser also pointed out that even if the current crisis ends quickly, there may be an additional daily demand of about 2 million barrels for up to two years to rebuild depleted oil reserves. He added that Aramco is working on alternative routes for crude oil exports to reduce its dependence on traditional routes. These actions are being taken as shipments from the Strait of Hormuz, known as the world's energy choke point, face disruptions.
Nasser also mentioned plans to develop storage facilities abroad, stating that these actions could triple Aramco's storage capacity. The importance of these investments has become particularly evident with the return of the East-West pipeline of Saudi Arabia to operational status. This pipeline has acted as a vital route to bypass the Strait of Hormuz in critical conditions.
Ultimately, the CEO of Aramco urged other countries to invest in making their supply chains more resilient, noting that all systems must achieve deeper layers of resilience. He emphasized, "As the war enters its eighth month, historic disruptions in the energy market have occurred, and there is a pressing need for immediate action towards investment and infrastructure development."
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