Energy
Wednesday, March 20th, 2024 5:00 pm EDT
Key Points
- Energy transition critique: Saudi Aramco CEO Amin Nasser argues that the energy transition is failing and policymakers should abandon the idea of phasing out oil and gas, highlighting the expected growth in demand for fossil fuels.
- Alternative energy challenges: Despite significant investment in alternative energy sources like wind and solar, they have been unable to displace hydrocarbons at scale, with wind and solar supplying less than 4% of the world’s energy and electric vehicle penetration less than 3%.
- Importance of oil and gas: Nasser emphasizes the continued significance of oil and gas, noting that the share of hydrocarbons in the global energy mix has only marginally decreased, with global demand reaching an all-time high. He also underscores the role of oil and gas in driving reductions in carbon emissions and the growing demand from developing nations.
Saudi Aramco CEO Amin Nasser delivered a stark critique of the energy transition during a panel interview at the CERAWeek by S&P Global energy conference in Houston, Texas. Nasser argued that the transition away from fossil fuels is failing, urging policymakers to abandon the idea of phasing out oil and gas. He emphasized the need for a reset in the transition strategy, proposing instead an adequate investment in fossil fuels to meet realistic demand assumptions. Nasser dismissed the International Energy Agency’s forecast of peak oil, gas, and coal demand by 2030, stating that demand is unlikely to peak anytime soon, especially considering the developing world’s needs. Despite significant investment in alternative energy sources, such as wind and solar, they have failed to displace hydrocarbons at scale. Nasser highlighted that wind and solar currently supply less than 4% of the world’s energy, while total electric vehicle penetration is less than 3%. He pointed out that the share of hydrocarbons in the global energy mix has only marginally decreased from 83% to 80% in the 21st century, with global demand reaching an all-time high. Nasser emphasized the importance of oil and gas security, particularly in developing nations where demand is expected to rise as prosperity increases. He advocated for a focus on reducing emissions from oil and gas alongside renewables, citing efficiency improvements as a significant contributor to reducing global energy demand. Nasser concluded by urging a phased approach to introducing new energy sources and technologies, emphasizing readiness, economic competitiveness, and infrastructure readiness as crucial factors.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/03/18/saudi-aramco-ceo-says-energy-transition-is-failing-give-up-fantasy-of-phasing-out-oil.html
