Global oil demand supports output growth in both Saudi Arabia, US: Nasser

The world’s growing appetite for oil will allow room for production growth both in Saudi Arabia and the United States, CNBC reported on Monday, citing Saudi Aramco CEO Amin Nasser.

"There is room to grow and shale will grow, especially with the market improving," Nasser told CNBC on the sidelines of CERAWeek by IHS Markit in Houston. "But as I said, the demand side is healthy."

Asked whether supplies of US shale will start crowding out Saudi crude, Nasser noted that forecasts for oil demand see the world consuming an extra 1.4 million to 1.7 million barrels a day in the coming years, fueled by strong economic growth.

Nasser also said he is not very concerned by the growing supply of US oil to Asia and Europe.

"Yes, the US is exporting to other markets, but we are also exporting to the US. So my point is there is additional supply that is coming from the US. Some of it is going to certain markets in Asia and Europe. However ... the US is a big market and we supply a significant amount of our crude to the US as well," he said.

Earlier, speaking at the CERAWeek, International Energy Agency (IEA) Executive Director Fatih Birol said he expects US shale oil output to continue to rise, regardless of OPEC policies.

Meanwhile, Nasser said Aramco's growth stands to benefit the US in many ways.

Aramco's Motiva refinery in Port Arthur, Texas, is the largest fuel refining facility in the US and Aramco plans to expand employment there in the coming years, CNBC said. Last year, Aramco announced it would invest $30 billion in the Motiva refinery through 2023 and create as many as 12,000 jobs.

US-based oilfield service firms working the Kingdom – such as Schlumberger, Halliburton and General Electric's Baker Hughes – will also benefit as Saudi Arabia succeeds in the oil market, Nasser said.

"Their business is expanding big time as we are adding more rigs and more services, as we are expanding our upstream business, especially in the gas sectors," he said.