Saudi Arabia’s crude production rose to 8.98m bpd in September: JODI data

Saudi Arabia’s crude production rose to 8.98m bpd in September: JODI data
The Kingdom’s crude exports in September grew by 170,000 bpd to 5.75 million bpd, a 3.04 percent increase from August. Shutterstock
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Updated 16 November 2023
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Saudi Arabia’s crude production rose to 8.98m bpd in September: JODI data

Saudi Arabia’s crude production rose to 8.98m bpd in September: JODI data

RIYADH: Saudi Arabia’s crude production increased to 8.98 million barrels per day in September, a rise of 57,000 bpd or 0.67 percent compared to the previous month, according to data from the Joint Organizations Data Initiative. 

The report also indicated that the Kingdom’s crude exports in September grew by 170,000 bpd to 5.75 million bpd, a 3.04 percent increase from August. 

However, Saudi Arabia’s direct burn of crude oil decreased by 120,000 bpd in September to 606,000 bpd.  

In line with the decision by the Organization of the Petroleum Exporting Countries and its allies known as OPEC+, Saudi Arabia has maintained lower crude exports and production since April 2023. 

The Kingdom initiated a 500,000 bpd reduction in oil output in April, extended until December 2024. It also pledged an additional cut of 1 million bpd in July, which will continue until December 2023, as announced by the Ministry of Energy earlier this month.
Crude imports in China dropped by 1.3 million bpd in September, a 9.1 percent decline compared to the previous month. 

In the US, crude production witnessed a month-on-month decrease of 133,000 bpd in September to 12.92 million bpd, while crude exports from the US rose by 58,000 bpd to 4.2 million bpd.
The JODI report highlighted that global oil demand remained at a seasonal record high for a fifth consecutive month in September, increasing by 2.5 million bpd year on year, driven by strong consumption in China, India, the US and Saudi Arabia. 

In September, natural gas demand for the EU and the UK combined rose by 2.8 billion cubic meters month on month. 

Earlier this month, OPEC had nudged up its forecast for global oil demand growth in 2023 to 2.46 million bpd, up 20,000 bpd from the previous forecast, primarily driven by the lifting of pandemic-related lockdown restrictions in China.  

For 2024, OPEC expects oil demand to reach 2.25 million bpd.  


Quantum-powered sensors to take the spotlight in aerospace sector: Thales Group CEO

Quantum-powered sensors to take the spotlight in aerospace sector: Thales Group CEO
Updated 18 sec ago
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Quantum-powered sensors to take the spotlight in aerospace sector: Thales Group CEO

Quantum-powered sensors to take the spotlight in aerospace sector: Thales Group CEO

RIYADH: Quantum-powered sensors and systems are set to overtake artificial intelligence and play a significant role in the aerospace sector, according to the CEO of Thales Group.

In an interview with Arab News during the eighth edition of the Future Investment Initiative in Riyadh, Patrice Caine – who also serves as chairman of the global aerospace systems company – highlighted that the quantum revolution is in close reach. 

He emphasized that the “second quantum revolution” will likely grow in prominence over the coming years, eventually matching or surpassing artificial intelligence’s influence. 

“It’s already in play. People talk more and more about it,” he said. “But it’s not, we say, as famous as AI, but it will become, certainly in the future.” 

He clarified that Thales is focusing on quantum sensors and communication rather than the more widely recognized field of quantum computing. 

Caine underlined that these areas have the potential to deliver significant advancements, particularly in enhancing the efficiency of sensors and decision-making systems within aerospace. 

Thales aims to leverage these quantum advancements to develop next-generation solutions, redefining operational capabilities in aerospace security and beyond. 

Caine added that this type of technology will likely be applied on an industrial scale in the next decade.

“We are not far from it. In fact, we have already proof of concept. We can already see these types of applications in our labs. Now, the journey is to industrialize these early prototypes,” he added, emphasizing the importance of finding market demand along with creating the technology. 

Caine emphasized that, unlike incremental improvements, quantum technology could drastically increase system efficiency.

“It’s, I would say, another way to apply quantum properties to sensors to enhance the efficiency of these sensors by 100 times more, which is huge. It’s revolutionary,” he said. 

Caine said that AI is “the technology of the moment,” and the company currently has almost 600 experts working on algorithms, processes, tools, and methodologies related to the technology. 

He further emphasized that the company utilizes symbolic AI, also known as model-based AI, for its clients, unlike the data-based technology used by the majority of the public. 

He further explained the implications of the technology on an industrial scale, saying: “In the short term, it (AI) will make our solutions, products, systems more and more premium.” 

Caine added: “So, potentially there is an advantage and an economic or financial advantage to bring products powered by AI. That’s clearly the first consequence.” 

The CEO believes that getting to grips with AI will become essential for competitiveness. 

“Longer term, it may become a must, either you master AI or not. And if you are not mastering it, you will progressively lose ground versus competition,” he said. 

Thales Group is a global technology leader specializing in advanced solutions for aerospace, defense, security, and digital identity. The company designs and manufactures systems for critical sectors, including air traffic management, avionics, cybersecurity, and AI. 


Humanoid robots expected to cost $25K by 2040, says Musk

Humanoid robots expected to cost $25K by 2040, says Musk
Updated 19 min 26 sec ago
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Humanoid robots expected to cost $25K by 2040, says Musk

Humanoid robots expected to cost $25K by 2040, says Musk

RIYADH: Elon Musk, CEO of Tesla and SpaceX, shared his vision of the future at the Future Investment Initiative, suggesting that by 2040, humanoid robots could surpass the human population.

During a panel discussion titled “The Future of AI,” Musk highlighted the rapid advancements in robotics and artificial intelligence.

He predicted that there could be at least 10 billion humanoid robots, each priced between $20,000 and $25,000.

“We’re moving toward a future where robots can handle a variety of tasks, significantly altering labor dynamics,” he stated, estimating that the cost of such robots would be notably low—around $25,000 for a versatile unit.

Musk also voiced concerns about the existential risks associated with artificial intelligence. “AI poses a significant existential threat, and we need to address it seriously,” he remarked. To that end, he founded XAI to develop an AI that truly benefits humanity, explaining, “I created XAI to ensure we have an AI that genuinely cares for humanity’s best interests.”

The conversation included insights into the future of transportation, with Musk asserting that “all cars will drive themselves—this is inevitable. They will be 10 times safer than human drivers.”

Looking to the stars, he expressed enthusiasm about space exploration, stating, “I believe we can launch starships to Mars within two years.” He also predicted that over time, “most countries will develop their own AI clusters.”

On demographic issues, Musk emphasized the critical role of birth rates in sustaining society: “If we don’t produce new humans, there’s no future for humanity, and all the policies in the world won’t change that.”


Oil demand set to average 104.5m bpd in a balanced market, says Aramco CEO

Oil demand set to average 104.5m bpd in a balanced market, says Aramco CEO
Updated 52 min 34 sec ago
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Oil demand set to average 104.5m bpd in a balanced market, says Aramco CEO

Oil demand set to average 104.5m bpd in a balanced market, says Aramco CEO

RIYADH: The global oil market remains stable, with Saudi Aramco forecasting an average demand of 104.5 million barrels per day for this year, according to CEO Amin Nasser. 

Speaking at the Future Investment Initiative conference in Riyadh, Nasser addressed the current dynamics affecting oil prices and consumption, particularly the implications of interest rate changes and economic conditions in China. 

“I think the market is currently balanced today. Definitely the increase in interest rates, what happened in China, had an impact, but it is balanced in terms of demand-supply fundamentals,” Nasser said. 

“We are looking at 104.5 (million barrels per day) an average for this year, the fourth quarter we are looking close to 106 million barrels,” he added. 

However, declining oil demand from China, the world’s largest crude oil importer, has posed challenges to global oil consumption and prices. 

Nasser acknowledged that while there is a “small impact” on gasoline due to the rise of electric vehicles and current economic conditions, growth still exists in China. 

“When people talk about China, they are always trying to maximize the downside and ignoring the upside,” he said.

In addition to addressing market conditions, Nasser highlighted Saudi Aramco’s commitment to sustainability, reiterating plans to launch a carbon capture, utilization, and storage project by 2027, aimed at capturing 9 million tonnes of carbon dioxide annually. 

Speaking on a panel titled “Future of Energy: What Will Accelerate the Energy Transition Curve?” on the first day of FII*, Nasser explained that this initiative will create a hub serving not only Aramco but the entire Kingdom. 

The move aligns with the oil giant’s broader strategy to achieve zero Scope 1 and 2 emissions across its wholly-owned assets by 2050, with an interim target of a 1.5 percent reduction by 2035 compared to 2021. The company also aims to reduce Scope 1 and 2 emissions intensity by 15 percent by 2035. 

“We’re building one of the biggest projects at 9 million tonnes by the end of 2027 or early 2028. We have been working for a number of years to identify the aquifers that will create the hub required to facilitate not only the 9 million tonnes but other emissions, like CO2, that might come from the rest of the industries in the Kingdom,” Nasser said. 

He added: “We are creating a hub that will cater not only for Aramco but for the rest of the Kingdom. We identified the aquifers and the storage capacity through exploration and drilling in the pilot wells that will be sufficient to satisfy the Kingdom’s requirements by 2060.” 

Nasser emphasized that both Aramco and Saudi Arabia are making significant investments in renewables, hydrogen, and carbon capture and storage technologies. 

“So, we are for the transition, but at the same time, we are making sure that we are growing our oil and gas activities and petrochemicals,” he said. 

“If you look at our emissions of methane and CO2, it is the lowest. So, we are not really against the transition; actually, we are for the transition, especially with the Kingdom’s Green Initiative and all of that,” Nasser added. 


El Salvador eyes commercial ties with Saudi Arabia, says vice president 

El Salvador eyes commercial ties with Saudi Arabia, says vice president 
Updated 29 October 2024
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El Salvador eyes commercial ties with Saudi Arabia, says vice president 

El Salvador eyes commercial ties with Saudi Arabia, says vice president 

RIYADH: El Salvador, the Central American nation that recently established an embassy in Saudi Arabia, is eager to forge commercial and cultural ties with the Kingdom, its vice president said. 

Speaking to Arab News on the sidelines of the Future Investment Initiative forum in Riyadh, Felix Ulloa said that El Salvador is positioning itself as a welcoming investment destination, focusing particularly on tourism to drive economic growth. 

Ulloa’s visit to FII8 comes just months after the Saudi Fund for Development signed an agreement with El Salvador’s Ministry of Foreign Affairs, opening avenues for developmental projects in the Central American nation. 

The agreement, signed in May, is focused on launching a water treatment and biogas energy project along the Acelhuate River, supported by a development loan from Saudi Arabia. 

“A month ago, we opened our embassy here. This is the first embassy of any Central American country in Saudi Arabia. Why? Because we want to strengthen our diplomatic relations with this beautiful country, with this government. We will soon move to the commercial relation, and we will move to the cultural interchange,” said Ulloa. 

He added: “I have a meeting with the universities in order to promote cultural interchange, bringing Saudis to El Salvador and taking Salvadorians to come over in order to strengthen these cultural relations.” 

The vice president emphasized that El Salvador is steadily evolving as a destination for tourism and investment, with notable improvements in security since President Nayib Bukele took office in 2019. 

“We have a very bad situation with the gangs who took over most of the nation’s territory. But with the new government of President Bukele, we are now the safest country in the Western Hemisphere,” said Ulloa. 

He further highlighted El Salvador’s openness to foreign direct investment, with a focus on sectors like tourism, renewable energy, and technology. Ulloa noted that the country has enacted regulatory reforms to streamline investments. 

“El Salvador is now in open arms for foreign direct investments. We are offering that through our government agency ‘Invest in El Salvador.’ We have approved a package of almost 40 new laws in order to facilitate the procedures to do business in El Salvador. Now, it is easy, with bureaucracy, without red tape,” said Ulloa. 

He added: “We also have opportunity for the digital economy. For instance, El Salvador is the first country in the world to approve a cryptocurrency, Bitcoin, as legal tender. That happened in September 2021. Now, we have another law approving digital assets.” 

Ulloa added that El Salvador is enhancing infrastructure to support tourism, including new airports, the Pacific railroad, and additional highways. 


Closing Bell: Saudi main closes in green at 12,062.09

Closing Bell: Saudi main closes in green at 12,062.09
Updated 29 October 2024
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Closing Bell: Saudi main closes in green at 12,062.09

Closing Bell: Saudi main closes in green at 12,062.09

RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Tuesday, gaining 8.94 points, or 0.07 percent, to close at 12,062.09.

The total trading value of the benchmark index was SR7.19 billion ($1.92 billion), as 52 of the listed stocks advanced, while 178 retreated.  

The MSCI Tadawul Index increased by 4.53 points, or 0.3 percent, to close at 1,517.79.

The Kingdom’s parallel market Nomu declined by 179.6 points, or 0.67 percent, to close at 26,623.1. This comes as 23 of the listed stocks advanced, while 43 retreated.

The best-performing stock of the day was Al-Baha Investment and Development Co., with its share price surging by 8.33 percent to SR0.26. 

Other top performers included Zamil Industrial Investment Co., which saw its share price rise by 6.39 percent to SR29.15.

Saudi Arabian Mining Co. and Red Sea International Co. also saw positive change today at 3.10 percent and 2.85 percent to SR56.5 and SR72.3, respectively.

The worst performer of the day was Leejam Sports Co., whose share price fell by 6.31 percent to SR193.

Riyadh Cement Co. and Arabian Mills Co. for Food Products also saw declines, with their shares dropping by 4.10 percent and 3.49 percent to SR28.10 and SR58, respectively.  

Raydan Food Co. and Union Cooperative Insurance Co. also saw negative changes today at 3.47 percent and 3.3 percent to SR24.18 and SR21.1, respectively.

On the announcements front, Thimar Development Holding Co. reported its interim financial results for the nine months ending Sept. 30, showing a net loss of SR11.28 million, which is 351.43 percent higher than the same period last year.

According to Tadawul, this loss occurred despite an increase in other revenues and is attributed to higher general and administrative expenses, as well as costs arising from adjustments to cash flows for financial obligations.

The company’s stock closed at SR43.1, down by 2.82 percent.

Mobile Telecommunication Co. Saudi Arabia, also known as Zain, announced a net profit of SR322 million for the nine months ending Sept. 30; however, this represents a 75.62 percent decline from the same period last year.

Operating expenses rose by SR123 million, and provisions for bad debts surged by SR217 million, according to Tadawul figures, which likely affected overall profitability.

The company also encountered financial obligations, including an SR633 million installment payment to the MFA in September, along with associated interest charges.

Furthermore, Zain invested SR293 million in capital expenditures during the third quarter of 2024 to improve customer experience and service quality, further pressuring net profit.

The stock closed the session at SR10.8, reflecting an increase of 0.37 percent.

Lejam Sports Co. reported a net profit of SR355 million as preliminary results during the same period, recording a 56.39 percent increase.

According to Tadawul, factors contributing to the profit increase include a growing subscriber base and the “Your Club Change” renewal program, which spurred the expansion of operating centers and higher cleaning and maintenance costs.

There was also a significant rise in non-recurring income, despite increases in general and administrative expenses and sales and marketing costs due to investments in technology and advertising.

Additionally, the firm recorded a SR7 million profit from a short-term Murabah investment. The stock closed the session at SR193, reflecting a decline of 6.31 percent.

United Electronics Co., also known as Extra, recorded SR356.7 million during this period, registering a 34.92 percent rise.

According to the statement, the company’s revenue growth and improved gross profit contributed to the increase, despite higher selling, distribution, administrative expenses, and financing costs.

The company’s shares ended the session at SR99.8, a decline of 1.38 percent.