Aramco at WEC
Amin Nasser: Set aside emotion in the strategy for orderly, inclusive energy transition
Aramco president and CEO discusses energy transition trilemma at World Energy Congress in Rotterdam.
In a candid discussion at the 26th World Energy Congress in Rotterdam, Aramco president and CEO Amin Nasser once again advocated for a realistic and inclusive energy transition plan that focuses on reducing GHG emissions, while providing the energy that powers the global economy.
In a fireside chat with John Defterios, former CNN emerging markets editor, Nasser stated that the energy transition may not happen if there is reliance on policy approaches alone, as he went on to stress the vital importance of technological readiness, as well as energy affordability and security, to help drive practical, multi-speed solutions, adding that non-conventional energy may not yet be ready to shoulder the burdens of global demand.
Nasser drew attention to efficiency gains in conventional energy and the differing needs of economies — and people — across the planet.
“It’s not one size fits all,” he said, explaining that what works for one nation may not be applicable elsewhere.
A lot of the policymakers do not understand what is required and how [the energy transition] is going to happen. Eighty percent of the consumption of hydrocarbons by 2050 is going to be in the Global South. Today, it is 40% in the Global North and 60% in the Global South. So that is huge growth in the Global South.
— Amin Nasser
A realistic plan
Nasser said that an orderly, realistic and inclusive transition plan should typically encompass four key elements:
- Adequate investment in oil and gas, based on realistic energy demand assumptions — rather than the abandonment of oil and gas
- An intensification of carbon reduction efforts; efficiency enhancement in all sectors; and a simultaneous transition for materials
- Continued research and investment in new energy sources and technologies, which may take time to be feasible and economically competitive
- Adequate attention to the energy needs and priorities of the Global South, rather than a primary focus on the Global North.
Aramco’s president and CEO advocated for an acknowledgment that the global energy transition is a highly complex matter that requires input from all relevant stakeholders, globally. He said that debate about potential solutions should not be clouded by emotion. Rather, the focus should be on both existing and new energy sources and technologies to address the challenges faced by all nations.
Scientific breakthroughs
Industrial companies are working hard to improve energy efficiency and to reduce GHG emissions, Nasser noted. In the transportation industry, for instance, enhancements have improved the mileage efficiency for cars, trucks, ships, and planes.
Similarly, there have been advances in the efficiency of home appliances, in the heating and cooling of buildings, and more. Digitalization is also contributing to energy efficiency, with scientific breakthroughs in artificial intelligence and Fourth Industrial Revolution technologies potentially offering further significant benefits.
Aramco’s participation in the 26th World Energy Congress demonstrates the company’s commitment to supporting inclusive energy transitions worldwide.
The four-day global event was hosted at the highest political level and included many of the world’s leading energy producers, suppliers, and consumers, including 70 ministers, 7,000-plus international energy stakeholders, and some 1,200 media representatives.
Caption for top photo: Amin Nasser answers questions during a fireside chat at the 26th World Energy Congress in Rotterdam.