From Fortune Magazine:

Saudi Aramco decided to halt the expansion of its output capacity due to the energy transition, according to Saudi Arabia’s Energy Minister. However, the minister isn’t ruling out the expansion altogether. The move has been viewed as a response to an energy shift towards low-carbon sources. Saudi Arabia’s oil output is currently in a dip, but Aramco’s CEO sees no peak in sight. The country remains influential in OPEC’s efforts to cut oil supply to stabilize the market. The halt in expansion saves Aramco billions of dollars and Saudi Arabia is leading an effort to cut oil supply to support the market and prevent a surplus. Finally, the move raises questions about Saudi Arabia’s view on future demand as the world shifts toward low-carbon energy, but Aramco’s CEO sees no peak in the near future. The move may result in higher dividends to the government.

Saudi Arabia is leading an effort by the Organization of Petroleum Exporting Countries and its allies in cutting oil supply in an support the market and prevent a surplus. The kingdom’s output is currently at a two-year low near 9 million barrels a day, meaning it already has an existing capacity buffer of about 3 million a day. The decision to halt Aramco’s expansion comes after eight months of elaborately reviewing the company’s capacity.

Read more: Saudi energy minister admits Aramco is halting output expansion because of energy transition