Photo courtesy: : F. Carter Smith | Bloomberg | Getty Images
By Ali Elias
HOUSTON, USA — Amin Nasser, CEO of Saudi Aramco, delivered a compelling message on Monday at the CERAWeek by S&P Global energy conference in Houston, Texas. Nasser challenged the prevailing narrative of the energy transition, urging policymakers to reassess their approach, according to CNBC
“In the real world, the current transition strategy is visibly failing on most fronts as it collides with five hard realities,” remarked Nasser during a panel interview.
With applause from the audience, Nasser proposed a bold reset of the strategy: “We should abandon the fantasy of phasing out oil and gas and instead invest in them adequately reflecting realistic demand assumptions.”.His idea obviously reflects the position of both established and emerging oil and gas producing developing nations.
Highlighting the global demand dynamics, Nasser emphasized that demand for fossil fuels is expected to continue growing in the foreseeable future, especially in developing nations. He urged the International Energy Agency (IEA) to broaden its focus beyond the U.S. and Europe to include the developing world.
Despite significant investments in alternative energy sources, Nasser noted that wind and solar currently provide less than 4% of the world’s energy, with electric vehicle penetration below 3%. In contrast, hydrocarbons remain resilient, comprising 80% of the global energy mix.
Nasser underscored the role of gas in reducing carbon emissions, attributing two-thirds of emission reductions in the U.S. to the transition from coal to gas.
Addressing concerns about emissions, Nasser emphasized the importance of reducing emissions from oil and gas while advocating for a pragmatic approach to integrating new energy sources.
“We should phase in new energy sources and technologies when they are genuinely ready, economically competitive, and with the right infrastructure,” concluded Nasser, encapsulating a vision for a balanced and sustainable energy future.