Saudi Energy Minister Abdulaziz bin Salman stated that Saudi Aramco's decision to halt capacity expansion is due to the energy transition. He mentioned that the company may not necessarily give up on production expansion, as Saudi Arabia continues to review its decisions to ensure stability in the energy market.

The company's announcement last month to discontinue plans to increase capacity by approximately 8% to 13 million barrels per day by 2027 came as a surprise to the oil industry. As the world shifts towards low-carbon energy, this move has sparked questions about Saudi Arabia's outlook on future demand, as well as concessions to robust oil supply from competitors, including US shale producers.

Additionally, ceasing expansion will save the company billions of dollars in annual expenditure, potentially leading to higher dividends to the government.