Saudi Aramco said oil production capacity is rapidly declining worldwide. As such, companies need to invest more in mining.
In an interview, CEO Amin Nasser said the situation is a "huge concern," especially since spare capacity is shrinking.
His comments came after prices soared 70% this year to about $ 85 per barrel. Many large consumers, including India, US and Japan, urged producers to ramp up output.
Nasser also said that in 2022, when flights increase, the deficit in the oil markets will also increase.
Several oil and gas traders have also criticized governments and climate activists for urging companies to stop investing in fossil fuels, saying it will cause energy shortages in the next decade.
To prevent this, Aramco is investing billions of dollars to increase daily production from 12 million to 13 million barrels. According to the plan, the project should be completed by 2027.
But many Wall Street banks, as well as OPEC members, doubt the world will face a supply deficit next year. JPMorgan even said that by March, oil markets will see around 1 million barrels oversupply from the current 1.5 million barrels deficit.
Saudi Arabia's energy minister also said that reserves may rise sharply in 2022. In addition, the coronavirus is still present, so it is justifiable that OPEC is opposing an unscheduled increase in production.
OPEC is currently adding 400,000 barrels in its daily production every month. Its next meeting will take place on November 4.
