During the CERAWeek by S&P Global energy conference in Houston, Texas, Saudi Aramco CEO Amin Nasser voiced skepticism about the current energy transition strategy, calling for a reset. Nasser argued that policymakers should abandon the idea of phasing out oil and gas, emphasizing the continued demand for fossil fuels in the foreseeable future.
Nasser highlighted the projections by the International Energy Agency (IEA), suggesting that peak oil, gas, and coal demand would likely occur around 2030. He criticized the IEA’s focus on demand in the U.S. and Europe, urging attention to the developing world’s energy needs.
Despite significant investments in alternative energy sources, Nasser pointed out their inability to displace hydrocarbons at scale. He underscored that wind and solar energy combined currently contribute less than 4% to the global energy supply, with electric vehicle penetration remaining below 3%.
Moreover, Nasser emphasized that the share of hydrocarbons in the global energy mix has only slightly decreased from 83% to 80% in the 21st century. He noted a substantial increase in global energy demand, reaching a historic high this year, with gas consumption growing by 70% since the turn of the century.
The CEO highlighted the importance of oil and gas security, particularly in developing nations, which he expects to drive demand as prosperity increases. Despite this, Nasser called for a focus on reducing emissions from oil and gas alongside renewable energy efforts.
Nasser emphasized the role of efficiency improvements in reducing global energy demand, advocating for a phased approach to integrating new energy sources based on readiness, economic competitiveness, and infrastructure.