Amin Nasser, the CEO of Saudi Aramco, has urged a reevaluation of energy transition plans for developing nations, highlighting strong projected growth in oil demand in the Global South.
Speaking at the Singapore International Energy Week, Nasser noted that developing economies are experiencing growth and rising living standards. This trend is increasing oil demand, which he believes will persist over the long term. He explained that even if growth slows or eventually halts, oil demand is expected to stabilize at a high level for an extended period.
Nasser projected that by 2050, more than 100 million barrels of oil per day will still be necessary. He contrasted this with predictions that oil demand could drop to just 25 million barrels per day, stating, “Being short 75 million barrels every day would be devastating for energy security and affordability.”
Given these insights, Nasser emphasized that developing countries should determine their own energy mix and the pace of their transitions. He stated, “Our main focus should be on the levers available now.”
Nasser’s remarks follow a recent report from BloombergNEF, which estimated that the Asia Pacific region needs to triple its spending on energy transition efforts to $2.3 trillion by 2030 to meet the Paris Agreement targets.
According to Nasser, developing nations in Asia may require investments of up to $6 trillion annually to advance their transitions. He pointed out that Asia currently relies on hydrocarbons for 84% of its energy needs. He noted that new energy sources are primarily meeting growing demand rather than replacing traditional energy sources.
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