OXFORD, U.K. (September 14, 2004) – Saudi Aramco’s president and chief executive officer Abdallah S. Jum‘ah, speaking at the prestigious Oxford Energy Seminar, has focused attention on his company’s unique three-fold commitment -- to reliably contribute to meeting the demand in the world’s oil markets, to serve Saudi Arabia’s national interests, and to maintain commercial profitability.
Participating in the Sept. 9 seminar for the second year running, Jum‘ah shared insights with more than 60 participants from various parts of the world, representing a multitude of public and commercial organizations in the oil and gas industry.
The discussion started with Dr. Robert Mabro, president of the Oxford Institute for Energy Studies, who introduced Jum‘ah, saying, “The world’s eyes are fixed on Saudi Aramco every time there is talk about reliability and stability of supply.”
Jum‘ah emphasized that Saudi Aramco has a huge responsibility as the world’s largest oil producer. “I have been traveling recently to the U.S., Europe and Japan; and there is a very high interest when Saudi Aramco is mentioned,” he noted.
The CEO outlined the strategic direction of Saudi Aramco, which states that the company will significantly increase its contributions to the Kingdom’s revenues and will promote the development of the local economy.
He then discussed the classic dilemma faced by national oil companies in balancing profitability against public service.
“Some projects may be high in value to society, but act as a brake on profitability,” the CEO said. “Others may make economic sense but provide little lasting benefit to the nation and its people. Therefore, we want to focus our combined resources and our efforts on activities that fall into that optimal quadrant - the one that achieves a win-win opportunity.”
He added: “For Saudi Aramco, there is a third element that we must also take into consideration. That is, our commitment to provide energy to global markets. Here, our role is unique, given the size of our reserves, the scale of our production capacity, our presence in all major markets and our long-term outlook.”
He said: “One of the key success factors in Saudi Aramco is our ability to think for the long-term. For example, we want our oil reserves to serve this generation, our sons and our grandchildren.”
Jum‘ah stressed: “We continue to say with 100 percent confidence that we are able to put 10 million barrels, day in day out, for at least the coming 50 years. We have also worked scenarios where we are able to increase our production to 11, 12 and even 15 million barrels per day. We know which fields we are going to develop and in what time frames. When there is a call on us to produce those amounts we will be able and our reserves base will support it.”
Jum‘ah also said, “When we talk about Saudi Aramco, we talk about the massive size of its operations. We are always prepared, and we have a lot of flexibility in our system, which is well secured and protected. Therefore, we are confident that incidents are not going to hamper or delay our contribution and shipping capability to the whole world.”