The head of Saudi Aramco, Amin Nasser, lambasted the current energy transition strategy as a flawed failure, highlighting the continued dominance of fossil fuels in global energy supply.
Addressing attendees at the CERAWeek conference in Houston, Nasser expressed skepticism about the efficacy of current transition efforts, citing data indicating that fossil fuels accounted for 82 percent of global energy consumption last year.
“In the real world, the current transition strategy is visibly failing on most fronts,” Nasser asserted, echoing concerns raised by the International Energy Agency regarding the trajectory of oil demand, which is projected to reach record levels this year.
Nasser emphasized the enduring relevance of hydrocarbons, dismissing suggestions of an imminent peak oil and gas scenario by 2030.
“All this strengthens the view that peak oil and gas is unlikely for some time to come, let alone 2030,” Nasser stated.
Joining Nasser in his skepticism was ExxonMobil Chief Executive Darren Woods, who cast doubt on the feasibility of achieving net-zero emissions by 2050, asserting that “we're not on the path” to reach this goal.
Woods highlighted a key challenge in emission reduction efforts, noting that while society desires lower emissions, reluctance persists when it comes to bearing the associated costs.
Nasser called for a shift towards policies aligned with the realities of the energy landscape, advocating for continued investment in hydrocarbons alongside efforts to reduce emissions.
“While alternative energy can reduce emissions, when the world does focus on reducing emission from hydrocarbons, it achieves much better results,” Nasser emphasized.
Despite calls at last year's COP28 conference for a transition away from fossil fuels, Nasser urged the world to abandon the notion of phasing out oil and gas and instead invest in these resources based on realistic demand assumptions.
