DHAHRAN: Aramco CEO Amin H. Nasser Calls for Realistic Pathway in Energy Transition
In a powerful keynote speech at CERAWeek 2024 in Houston, Texas, Aramco President and CEO Amin H. Nasser emphasized the urgent need for a new approach to the energy transition that includes oil and gas. Nasser boldly stated that the current transition strategy is failing on multiple fronts as it clashes with five harsh realities.
Harsh Realities of the Energy Transition
These harsh realities, as outlined by Nasser, include the necessity to reset global efforts to meet climate ambitions, the failure of alternatives to displace hydrocarbons at a significant scale, the high costs associated with alternative energy sources, the energy needs of the Global South, and the potential for further emissions reductions from oil and gas.
Redefining Emissions Reductions
Nasser called for a shift in mindset regarding emissions reductions from oil and gas. He urged the industry to abandon the idea of phasing out hydrocarbons and instead invest in them strategically, based on realistic demand projections. Nasser advocated for a focus on reducing carbon emissions, improving efficiency, and introducing lower carbon solutions while gradually incorporating new energy sources and technologies when they are truly viable and cost-effective.
Consumer Impact and Concerns
Addressing the impact of the energy transition on consumers, Nasser acknowledged that the current strategy is causing hardships for the majority of consumers worldwide. He highlighted the growing demand for energy with lower emissions but stressed that many struggle to afford the energy they need and worry about a reliable supply. Nasser criticized the current strategy for overlooking these consumer concerns and focusing too heavily on replacing hydrocarbons without prioritizing emissions reductions.
Hydrocarbon Demand Outlook
Despite significant investments in energy transition initiatives, Nasser pointed out that alternatives have not been able to replace hydrocarbons on a large scale. Global oil demand is projected to hit record levels in the near future, while gas continues to play a crucial role in the global energy mix. Nasser’s assessment indicated that peak oil and gas consumption is unlikely in the foreseeable future.
About CERAWeek
CERAWeek brings together leaders, policymakers, and industry experts from various sectors to discuss energy, climate, and environmental challenges. With over 8,000 attendees representing a wide range of industries, CERAWeek provides a platform for sharing insights, innovative ideas, and solutions to the pressing issues facing the energy sector. The conference features more than 1,400 expert speakers who contribute to shaping the future of energy and sustainability.