World Courant
Amin Nasser, CEO of Saudi Aramco, speaks on the 2024 CERAWeek by S&P World convention in Houston, Texas, on March 18, 2024.
F. Carter Smith | Bloomberg | Getty Pictures
HOUSTON – Saudi Aramco CEO Amin Nasser mentioned Monday that the vitality transition is failing and policymakers ought to abandon the “fantasy” of phasing out oil and gasoline as demand for fossil fuels is anticipated to proceed rising within the coming years.
“In the true world, the present transition technique is visibly failing on most fronts as a result of it collides with 5 onerous realities,” Nasser mentioned throughout a panel interview on the CERAWeek by S&P World vitality convention in Houston, Texas.
“A reset of the transition technique is urgently wanted and my proposal is that this: we should quit the fantasy of phasing out oil and gasoline and as a substitute put money into it, adequately reflecting reasonable demand assumptions,” the CEO mentioned to applause from the viewers.
The Paris-based Worldwide Vitality Company predicted final yr that peak demand for oil, gasoline and coal would are available in 2030. Nasser mentioned demand is unlikely to peak anytime quickly, not to mention by that yr. Nasser advised that the IEA concentrate on demand within the US and Europe and also needs to concentrate on creating nations.
Oil costs, vitality information and evaluation
Nasser mentioned various vitality sources have didn’t displace hydrocarbons on a big scale, regardless of the world investing greater than $9.5 trillion over the previous 20 years. Wind and solar energy at the moment present lower than 4% of the world’s vitality, whereas the general penetration of electrical autos is lower than 3%, he mentioned.
In the meantime, the share of hydrocarbons within the international vitality combine has barely fallen from 83% to 80% within the twenty first century, Nasser mentioned. World demand has risen by 100 million barrels of oil equal per day over the identical interval and can attain a file excessive this yr, the CEO mentioned.
Gasoline has grown 70% because the starting of this century, Nasser mentioned. The transition from coal to gasoline is accountable for a lot of the discount in CO2 emissions, he mentioned.
“That is definitely not the image of the long run that some individuals paint,” Nasser mentioned. “Even they’re beginning to acknowledge the significance of oil and gasoline security.”
Growing nations within the international south, in the meantime, will enhance demand for oil and gasoline as prosperity rises in these nations, which symbolize greater than 85% of the world’s inhabitants, the CEO mentioned. These nations obtain lower than 5% of investments targeted on renewable vitality, he mentioned.
Nasser mentioned the world ought to focus extra on decreasing emissions from oil and gasoline, along with renewable vitality sources. The CEO mentioned effectivity enhancements alone have diminished international vitality demand by virtually 90 million barrels of oil equal per day.
“We should section in new vitality sources and applied sciences when they’re actually prepared, economically aggressive and have the appropriate infrastructure,” Nasser mentioned.
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