Amin H. Nasser, CEO of Saudi Aramco, expressed optimism about China's oil consumption following the Chinese government's recent economic stimulus measures. Speaking at the Singapore International Energy Week, Nasser highlighted the demand for aviation fuel as a standout factor in the Chinese market. He reiterated Saudi Aramco's goal to boost daily production to 4 million barrels, with a strong focus on the Chinese market.
Amidst predictions from market analysts that China's demand for fuels like gasoline and diesel may have peaked due to the rapid electrification of passenger vehicles, Nasser emphasized Saudi Aramco's investment plans in China. He mentioned ongoing investments and partnerships as part of their strategy.
Additionally, China has seen a significant increase in orders for liquefied natural gas commercial vehicles in the trucking industry, paving the way for this cleaner fuel to substitute a portion of the oil demand in the sector. Despite these trends, Saudi Aramco forecasts that global oil demand will surpass 100 million barrels per day by 2050, driven by economic expansion and rising living standards in the global south. The company estimates this year's global daily oil consumption to be 104.5 million barrels, slightly above the International Energy Agency's (IEA) estimate of 102.8 million barrels.
While the IEA recently noted that the demand for all fossil fuels is expected to plateau this decade as the world transitions to the "age of electricity," Nasser argued for a long period of stable energy demand, stressing the need for energy supplementation rather than rapid transformation.
