Crude oil production capacity is declining around the world, and greater investments in new production are urgently needed, according to Aramco’s CEO, Amin H. Nasser.

Spare oil production capacity is defined as products that can be started in 30 days and maintained for at least 90 days. Over the next five years, Aramco is planning to increase its spare capacity to 13 million bpd.

Bloomberg quoted Amin saying: “It’s a huge concern. If there’s aviation pick up next year, that spare capacity will be depleted. It’s now getting to a situation where there’s limited supply — whatever is left that’s spare is declining rapidly.”

Speaking earlier this month at the Energy Intelligence Forum, he said: “We maintain 25-year production profiles for new projects. Our philosophy is to provide cleaner oil and gas for the long term. We are developing it for the long term, not the short term.”

Bloomberg said in its report that oil and gas dealers have levelled criticism at governments and activist organisations for calling for an end to new oil and gas development, claiming this would lead to an energy deficit within the next ten years. However, there is no threat of shortages soon. Most analysts predict that by March 2022, the market will have shifted into a surplus of roughly 1 million bpd. This compares to a current shortfall of 1.5 million bpd.

The United Nations Environmental Program is the most recent international body to advocate for a halt to oil and gas exploration. One of the report’s authors stated, “global coal, oil, and gas production must start declining immediately and steeply to be consistent with limiting long-term warming to 1.5°C.”