Saudi Aramco's Al-Falih Stresses Interdependence in WEF Remarks

DAVOS, Switzerland, February 03, 2010 -- Saudi Aramco’s President and CEO
Khalid A. Al-Falih has underlined the need to focus on energy inter-dependence.


He made these remarks in an address at a “Global Energy Outlook” panel
discussion held recently at this year’s World Economic Forum in Davos,
Switzerland.


“The concern of peak oil is behind us,” Al-Falih said. “There is too much
rhetoric in the public domain about moving away from oil,” Al-Falih said
during a “Global Energy Outlook” panel discussion.


"Energy independence is a misleading, unachievable goal; rather, the focus
should be on energy interdependence, he said.



Al-Falih suggested that energy security should be addressed in the framework of
a strong interdependent relationship between suppliers and consumers, according
to a latest report carried by Saudi Aramco's web-site.


Al-Falih explained that the peak-oil concept was damaging as it contributed to
great price volatility, which was harmful to consumers and suppliers alike.
"Although the industry faces more complex technological issues, plenty of
resources are available."


He expressed confidence in a talented work force capable of developing
innovative technology to overcome future challenges.


He acknowledged that fossil fuel is ultimately a finite resource but advised
the audience that the world will rely on petroleum for energy needs in the
long-term.


Al-Falih challenged leaders to responsibly communicate that “it will take
decades, not years” for an energy shift to occur.


He advised that everyone should work responsibly toward a smooth, gradual
transition.


The company is doing its part in this transition. “We have reached a
production capacity of 12 million bpd … We produce more than 8 million, with
a spare capacity of more than 4 million bpd,” said Al-Falih.


“This is good for the world economy and for the Kingdom in the long-term. …
It is important to the Kingdom that there will be stability in the oil
industry.”


In reply to a question about oil supplies, Al-Falih noted that “upstream,
one-third capacity is idle, yet ready to come on-stream on a very short
notice.” Saudi Aramco continues to invest heavily in all parts of the value
chain, including refining, tankers, pipelines and terminals. He added that when
demand/supply balances require additional capacity, “we will certainly
consider it.”


Al-Falih concluded by promising, “The largest supplier of petroleum energy is
committed in the long-term not only to provide … hydrocarbons but to provide
them to the market in a reliable and environmentally responsible way.”


The World Economic Forum annually draws world leaders to examine global
development.

--SPA