The head of Aramco, the largest oil producer in the world, called out individuals who “shame oil and gas investors” and emphasised the necessity for a reliable energy transition strategy. The global energy crisis, according to Saudi Aramco, was caused by a lack of investment in fossil fuels. Saudi Aramco also cautioned that excess production capacity in the oil market might be eliminated once economies recover.
On the back of the increased demand for governments to identify cleaner sources of energy, Nasser argued that policymakers and stakeholders should recognise that supply of conventional energy is still necessary for the long run.
“When you shame oil and gas investors, dismantle oil- and coal-fired power plants, fail to diversify energy supplies (especially gas), oppose LNG receiving terminals, and reject nuclear power, your transition plan had better be right,” CEO Amin Nasser said in a speech on Tuesday at Schlumberger Digital Forum 2022, in Switzerland, where high-ranking energy leaders globally talk about the challenges of the industry.
“When the global economy recovers, we can expect demand to rebound further, eliminating the little spare oil production capacity out there,” Nasser added. “By the time the world wakes up to these blind spots, it may be too late to change course. I am seriously concerned.”
Following the Russia-Ukraine crisis, crude rose beyond $125 per barrel; however, it has since fallen to $90, while European gas prices reached record highs.
Saudi Arabia and the United Arab Emirates are two of the few OPEC countries with sizable oil production reserves. Each of them is investing billions of dollars to further boost production. The cost of closing down coal and oil-fired power stations before solar and wind could replace them is now being felt by Western countries.
The biggest oil exporter in the world, Saudi Arabia, contends that the demand for fossil fuels will remain high for many years to come and that their use can only be lowered gradually. The nation is investing in solar and hydrogen as part of its ongoing commitment to completely eliminate its carbon emissions by 2060.
