Saudi Aramco CEO: "Abandon the Illusion of Gradual Oil Phase-Out"

The CEO of Saudi Arabia's state-owned Aramco stated that fossil fuel demand will continue to increase and that the illusion of gradually phasing out oil must be abandoned. He warned that rushing energy transition policies could backfire due to the gap with reality.

[Image source=AFP Yonhap News]

According to economic media CNBC and others, Amin Nasser, CEO of Aramco, attended the S&P Global Energy Conference held in Houston, Texas on the 18th (local time) and said, "Energy transition strategies are largely failing noticeably as they clash with harsh realities."

He emphasized, "It is urgent to reset the (energy) transition strategy," adding, "We must abandon the illusion of gradually phasing out oil and gas and invest by properly reflecting realistic demand." Immediately after Nasser’s remarks, industry officials attending the event unanimously applauded in agreement.

Last year, the International Energy Agency (IEA) predicted that demand for oil, gas, and coal would peak by 2030. Nasser disagreed with this outlook, pointing out that the IEA should consider not only demand from the US and Europe but also from developing countries.

In particular, Nasser highlighted that despite more than $9.5 trillion invested worldwide over the past 20 years, alternative energy sources have not been able to replace existing carbon fuels. Wind and solar currently account for less than 4% of the world’s energy sources. The adoption rate of electric vehicles is also below 3%. He noted, "The share of carbon fuels has barely dropped from 83% to 80% in the 21st century," and "oil demand has increased by 100 million barrels per day and is expected to hit a record high this year."

Nasser said, "This is not the future picture some have painted," emphasizing, "Even they have begun to recognize the importance of oil and gas security." He stated that the world should focus on reducing emissions from oil and gas in addition to renewable energy, noting that efficiency improvements alone have reduced energy demand by the equivalent of 90 million barrels per day over the past 15 years. During the same period, wind and solar replaced 15 million barrels. He added, "New energy sources and technologies with appropriate infrastructure must be introduced gradually."

Other representatives attending the conference expressed similar views. Jean-Paul Freytes, CEO of Petrobras, warned, "If we rush and things go wrong, we will face a crisis we will never forget." Mike O’Neill, CEO of Woodside Energy, also pointed out that the idea that the transition to clean energy can happen quickly is unrealistic. On the other hand, Jennifer Granholm, US Secretary of Energy, countered that the transition to clean energy is "undeniable and inevitable," calling it a "reconfiguration of the global energy system."

This content was produced with the assistance of AI translation services.