IPTC
IPTC: Nasser calls for realistic energy transition narrative
Unrealistic energy transition narratives make it difficult for countries to make prudent transition-related investment decisions, says Aramco president and CEO.
Aramco president and CEO, Amin Nasser, drew attention to unrealistic global energy narratives during the opening of the International Petroleum Technology Conference (IPTC), held at the Dhahran Expo in Dammam.
Nasser described the current narratives as “risky,” because they mask the reality, which shows clearly that all forms of energy are needed for a robust and realistic global energy transition. This lack of realism is unhelpful as it makes it difficult for countries to take prudent energy-related investment decisions.
The narratives need to completely sync with the current realities. The industry has spent $8 trillion on alternatives since 2000, and today alternatives only constitute 4% of the primary energy demand.
— Amin Nasser
Indeed, at the IPTC gala dinner the previous evening, Nasser noted that the Russia-Ukraine conflict had taught the world a hard lesson: that renewables are still in no shape to displace oil and gas in any significant way.
Continued market dominance
Nasser therefore urged industry leaders and those creating the narrative around the energy transition to be more pragmatic, acknowledging some growth in solar and wind energy, but stressing the continued market dominance of oil and gas in the energy mix.
He said that Aramco continues to invest in oil and gas — as well as in renewables, hydrogen, and technologies such as carbon capture and sequestration. “We believe we will need all of these sources of energy for the long-term,” he said, adding that it was important to maintain the investment momentum for global energy security.
Nasser said that at present, Aramco does not see a peak oil and gas demand on the horizon, adding that the company would maintain its focus on its ambitions to further reduce emissions.
Affordable and sustainable
It is estimated there will be an additional 2 billion people on the planet by 2050, the majority of whom will live in the Global South. Noting this, Nasser called for a “realistic and robust” energy transition underpinned by a multi-source, multi-speed, multi-dimensional approach so that the future energy mix is affordable as well as sustainable.
Nasser shared the IPTC stage with Patrick Pouyanné, TotalEnergies CEO, and Meg O’Neill, CEO of Australian energy company Woodside.
Caption for top photo: Amin Nasser drew attention to unrealistic narratives relating to the energy transition during the opening of the International Petroleum Technology Conference.
