Saudi Arabia Hikes Oil Investments as it Profits from Price Surge

Saudi Arabia’s state oil company Aramco, under pressure from the West to boost output amid soaring prices, pledged on March 20 to hike investments by around 50% this year as it reported a doubling in 2021 profits.

Oil prices leapt 50% last year as demand recovered from the COVID-19 pandemic, and then surged above $100/bbl to 14-year highs in February after Russia invaded Ukraine, leading Western nations to urge major producers to increase output.

Aramco said it would boost its capex to $40 billion-$50 billion this year, with further growth expected until around the middle of the decade. Capex was $31.9 billion last year, up 18% from 2020—indicating an increase of about 50% for this year at the middle of the guidance range.