Aramco’s Nasir K. Al-Naimi highlights ‘energy realism’ at global industry meeting

Aramco’s Upstream executive vice president Nasir K. Al-Naimi addressed industry experts from around the world at the Baker Hughes Annual Meeting 2023 recently — a major date in the energy industry calendar that attracts global thought leaders.

Speaking on the theme of “energy realism,” Al-Naimi took the opportunity to stress the urgent need to “shatter the misleading narrative that oil and gas can be quickly and easily replaced in the global energy transition,” and that “conventional sources have no role in a net-zero world.” 

He explained that fossil or conventional fuels supplied more than 82% of the world’s energy in 2021, and while modern renewables (excluding hydroelectricity) are growing fast, they are still supplying less than 7% of total global primary energy supplies.

Urgent need to reevaluate

Al-Naimi said, “I believe there is a need to reevaluate the situation, and develop transition plans that are more realistic … acknowledging the need for ample, reliable and affordable energy … of course alongside climate protection efforts.” 

The Baker Hughes Annual Meeting was held in Florence, Italy, on the theme of “Balance and Momentum” in the energy industry. Al-Naimi used the global reach of the event to highlight Aramco’s commitment to providing energy stability, while working toward net zero, and supporting a more practical and orderly energy transition.

He explained that Aramco is increasing its maximum sustainable capacity from 12 million barrels per day (MMbpd) to 13 MMbpd by 2027, and working to increase gas production by more than 50% by the end of this decade. 

Aramco reinventing upstream

Al-Naimi also emphasized Aramco’s leading position as one of the lowest carbon intensity suppliers of energy in the world, saying: “We are reinventing upstream … making exploration, drilling, and production more fit-for-purpose for tomorrow’s world — smarter, safer, more efficient … and above all, more sustainable,” he said.

Aramco’s executive vice president of Upstream detailed a number of Aramco’s interim targets en route to net zero, which include further reducing upstream carbon intensity by at least 15% by 2035 (versus 2018), and continuing to invest in areas such as cleaner conventional engines, carbon capture, utilization and storage, and hydrogen and renewables. 

We are putting technology at the forefront of our future, harnessing the power of AI, robotics, supercomputing, and the latest digital technologies.
— Nasir K. Al-Naimi

Partnerships for a common goal

While Al-Naimi’s main focus was on energy security and a more feasible energy transition, he also reminded the industry of the related challenges of labor shortages, stressing that we must ensure the industry remains attractive for the next generation of talent. 

In addition, he praised localization efforts by Aramco and its partners — many of which were at the event — that have resulted in, “a more resilient, efficient, and world-class in-Kingdom supply chain.” 

Concluding his address, Al-Naimi emphasized that Aramco moves forward in a world where oil and gas will still play a prominent and parallel role in the energy future, while calling on partnerships for a common goal.

“Working together, we can persuade the world to adopt a more resilient global energy transition … resulting in a more affordable, secure, and sustainable energy future.”

Caption for top photo: Nasir K. Al-Naimi speaks at the Baker Hughes Annual General Meeting.