How Saudi Aramco plans to win the oil endgame

Saudi Aramco's oil production process emits less carbon compared to its competitors due to several factors:

1. Thoughtful reservoir management: Since 1951, Saudi Aramco has meticulously managed production from the world's largest conventional oil field - Ghawar Field. Instead of maximizing production rates per field, the company balances production from across its portfolio, tapping into newer reservoirs when required. This approach helps maintain reservoir pressure and maximize reservoir sweep, resulting in lower carbon emissions.

2. World-leading flare minimization: Saudi Aramco significantly reduced the amount of gas flaring in the 1970s. Currently, its flaring intensity remains at less than 1% of gas production, which is an impressive leadership position recognized by the World Economic Forum.

3. Energy efficiency: In 2019 alone, the company implemented over 200 energy efficiency initiatives, focusing on getting the best energy performance from its operating facilities and residential communities3.

4. Greenhouse gas (GHG) management: Saudi Aramco is committed to reducing GHG emissions, with a focus on operational analytics and insights. The company's Fourth Industrial Revolution Center provides real-time analysis of all operations, enabling better GHG management2.

5. Meticulous methane leak detection and repair: With a methane intensity of 0.06%, Aramco's methane emissions are among the lowest in the industry. The company monitors and measures methane emissions from its operating facilities' equipment, ensuring regular checks and maintenance.

These factors combined have led to Saudi Aramco's carbon intensity being ranked among the world's least carbon-intense sources of crude oil2.

Saudi Aramco is well positioned to increase its market share in the global oil industry due to several factors:

1. Abundant Reserves: Aramco boasts the largest proven reserves of oil, which would last into the second half of the century at current pumping rates. This gives the company a significant advantage over its rivals, as it can continue to produce oil at a lower cost for a longer period.

2. Low Production Costs: Aramco's production costs are around $3 a barrel, which is significantly lower than many of its Western private-sector rivals. This allows the company to generate substantial profits and maintain a competitive edge in the market.

3. Investments in Reservoir Maintenance: Despite having a seemingly secure position, Aramco is investing in maintaining its reservoirs to ensure a continued supply of oil. This commitment to maintaining its production capacity is crucial in a world that is still heavily reliant on hydrocarbons.

4. Strategic Expansion: Aramco is expanding its presence in refining and petrochemicals to diversify its oil business and secure offtake of its crude2. The company has also made strategic acquisitions, such as the purchase of Valvoline Inc's global products business, to strengthen its market position2.

5. Government Support: As the linchpin of Saudi Arabia's strategy to end its reliance on oil and diversify its economy, Aramco has the backing of the government to pursue its growth plans and maintain its market share.

These factors combined put Aramco in a strong position to increase its market share in the global oil industry, even as the world moves towards decarbonization.