DUBAI: Saudi Aramco will increase spending and issue bonus shares as oil’s surge to more than US$100 (RM419) a barrel bolsters the company’s plan to boost crude and natural gas production.

       The Saudi Arabian firm, like rivals such as BP Plc and Chevron Corp, has experienced a sharp turnaround from 2020, when the pandemic hammered energy demand and forced it to shelve several projects.

       Net income rose to US$110bil (RM461bil) in 2021, up from US$49bil (RM205bil) a year earlier, the state-controlled company said.

       Aramco will probably increase capital expenditure to between US$40bil (RM168bil) and US$50bil (RM210bil) this year, compared with US$32bil (RM134bil) in 2021.

       Aramco, the world’s biggest energy exporter, forecasts more growth in investment until the middle of the decade.

       That makes it stand out from many competitors who are cutting back on fossil fuels to reduce carbon emissions.

       Aramco has said oil and gas consumption would remain strong for decades and that the run up in prices underscores the need for more exploration.

       The company wants to raise crude-production capacity to 13 million barrels a day from 12 million by 2027, a project that will cost billions of dollars.

       It is also trying to increase gas output by more than 50% by 2030.

       “Substantial new investment is required to meet demand growth, against a broader decline in upstream investment across the industry globally,” Aramco said on Sunday.

       Aramco will also focus on blue hydrogen and the carbon-capture facilities needed to manufacture it.

       The fuel only only emits water vapour when burned, making it less polluting than oil, gas and coal. But the technology for producing it on a mass-scale is still unproven, and there’s unlikely to be a significant global market before 2030. — Bloomberg