In an era where energy security and economic growth are inextricably linked, the role of advanced oil production technologies has become pivotal. Saudi Aramco, the world’s largest oil producer, stands at the forefront of this transformation. The company's cutting-edge innovations in oil extraction, refining and sustainability, Aramco is not only reshaping the global energy landscape but is also emerging as a key enabler of economic growth for the BRICS bloc.
BRICS nations account for 55% of the global population and 42% of global GDP. Their combined energy demand is projected to reach 35% by 2040, according to the International Energy Agency (IEA). Many BRICS countries face challenges in meeting their energy needs sustainably and efficiently. India, the world’s third-largest energy consumer imports over 85% of its crude oil and 50% of its natural gas, spending nearly $10 billion annually on energy imports. China, the largest energy consumer, relies on importers for 72% of its crude oil, making energy security a top priority. 60% of South Africa's energy needs are met by coal, while renewable energy sources account for only 11% of the country's energy mix. A significant portion of the country's refined petroleum is also imported to limited refining capacity. These challenges highlight the urgent need for advanced oil production technologies and infrastructure development, areas where Aramco’s expertise can play a transformative role.
Aramco’s technologies are not just about extracting oil, they are about creating economic value. In India, Aramco’s $15 billion investment in Reliance Industries’ oil-to-chemicals (O2C) project is set to double Reliance’s refining capacity to 2 million bpd by the end of 2025. This will reduce India’s reliance on imported refined products, which currently account for 30% of its consumption. In Brazil, Aramco’s collaboration with Petrobras has increased Brazil’s offshore oil production by 15%, adding 50,000 bpd to the country’s output. This has created 10,000 jobs and generated $1 billion in revenue for the Brazilian economy. In China, sustainable growth is one of the areas Aramco is championing. Aramco's CCU technologies are being deployed in China’s Sinopec refineries, capturing 1 million tons of CO2 annually and reducing emissions by 20%, supporting China’s goal of achieving carbon neutrality by 2060.
Aramco’s dominance in the oil industry is underpinned by its relentless focus on innovation. The company has pioneered several groundbreaking technologies that have revolutionised oil production. Aramco’s enhanced oil recovery (EOR) techniques like gas injection and chemical flooding, have increased oil recovery rates from mature fields by up to 70%. The company's Haradh III project in Saudi Arabia used advanced EOR methods to extract an additional 300, 000 barrels per day (bpd) from a field that was once considered depleted. On top of this, Aramco’s use of AI and big data analytics has reduced drilling costs by 20% and improved operational efficiency by 30%. The company’s 4IR Arabia initiative aims to digitise the entire oil value chain, from exploration to distribution. Aramco’s Carbon Capture and Utilisation (CCU) projects, such as the Hawiyah Gas Plant, capture 800,000 tons of CO2 annually, which is then used for enhanced oil recovery. This technology aligns with global sustainability goals and can be replicated in BRICS+ nations to reduce emissions. Aramco’s refining technologies enable the conversion of crude oil into high-value petrochemicals, with its Sadara Chemical Company producing over 3 million tons of petrochemicals annually, a sector many of the BRICS nations can solidify their expertise in.
As the BRICS+ bloc continues to expand, the demand for innovative energy solutions will only grow. Aramco’s role as a technology leader positions it as a key partner in this journey. By fostering collaboration, knowledge sharing, and investing in sustainable solutions. Aramco is not only driving economic growth but is also paving the way for a more resilient and prosperous future for the BRICS+ nation's energy security goals.
By Chloe Maluleke: Associate at The BRICS+ Consulting Group
Russian & Middle Eastern Specialist