Saudi Energy Minister Prince Abdulaziz bin Salman warned during the Saudi Budget 2022 Forum that the world is on the cusp of a dangerous period that may lead to an energy crisis if investment spending is not increased to maintain and increase production capacity.
Prince Abdulaziz bin Salman said, Lack of investment will lead to the disappearance of unused production capacity, warning of a decline in production by about 30 million barrels as a result of stopping crude exploration investments.
He pointed out that the Kingdom is the only country that increased its production at the height of the Corona pandemic in April 2020, and therefore took the initiative with certainty to confront the uncertainty in the markets.
He considered that hesitation from others is a blessing for the investor who builds his steps on addressing uncertainty with certainty, and thus some countries will suffer from the lack of clarity of policies.
The Saudi Minister of Energy touched on the ESG factors that take into account an environmental governance system for financing energy projects, and thus these policies will reduce the capabilities of energy companies to invest and obtain the necessary financing for it.
Prince Abdulaziz bin Salman reassured about the disruption of the oil industry, explaining that pessimistic estimates will not be achieved with regard to the most important industry sponsored by the Kingdom.