Aramco CEO Amin Nasser believes the idea of ending oil and gas is a fantasy that should be abandoned. He is seen in Houston, Texas on March 18, 2024).
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The current energy transition strategy is “a failure,” as the CEO of Saudi oil company Aramco, Amin Nasser, said in a speech in Houston, Texas. Other oil companies, brought together for the CERAWeek conference by S&P Global, supported it in its desire to pass on the cost of this transition to the consumer.
Amin Nasser's message is crystal clear: We should abandon the fantasy of ending oil and gas and instead invest [in this industry] to meet demand, he said at the first day of this great gathering of the energy world. The CERAWeek conference brings together more than 7,000 people.
Contrary to the scenarios of the International Energy Agency, Amin Nasser does not believe in a surge in demand for hydrocarbons during this decade, but rather in continued growth until 2045.
He cites as an example the increase in the production of natural gas and coal, while the energy demand of developing countries is still on the slope ascending.
This is far from being the future that some expected.
A quote from Amin Nasser, CEO of the oil company Aramco
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In December, during the 28th Climate Conference At the UN, nearly 200 countries signed an agreement to move away from fossil fuels.
However, very quickly, the Saudi Minister of Energy, Prince Abdulaziz bin Salman, affirmed that the agreement did not force producers to change their ways of doing things.
The message from consumers is: They want energy that helps protect the planet and their finances with little disruption to their daily lives. Unfortunately, the current transition strategy ignores this message, argued Amin Nasser.
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According to ExxonMobil CEO Darren Woods, many proposed decarbonization solutions such as hydrogen or carbon capture CO2 in the air do not survive without government subsidy.
The Aramco CEO is not the only one emphasizing the issue of affordability. If, last year, oil companies insisted on the importance of having secure supplies in light of the sanctions against Russia, this year, several companies are also talking about the cost of this transition on the consumer.
< p class="StyledBodyHtmlParagraph-sc-48221190-4 hnvfyV">Everyone wants to get to zero emissions, but no one wants to pay the price, ExxonMobil CEO Darren Woods said at the same conference. As it stands, we are not on the path to zero emissions by 2050.
Darren Woods also expressed doubts about the feasibility of certain technologies, notably carbon capture for sectors where carbon dioxide is less concentrated. All of these technologies are in preliminary stages. […] I am optimistic, but I am not convinced that they will succeed.
He adds that no new clean technology is currently viable without subsidies and government policy.
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Demand for barrels of oil is expected to increase in 2024.
The CEO of TotalEnergies, Patrick Pouyanné, also reminded governments that they should take into account the impact on consumers. If you go too fast, you run the risk of having to go backwards. […] You can regulate, but if people don't want it, they will vote for other people.
US Energy Secretary Jennifer Granholm, however, presented another view of consumer and investor demands. A few months before the American elections, she defended her government's policy which emphasizes clean technologies.
The impetus for a clean energy transition is undeniable, she emphasized several times in her speech. She added that investment in clean energy has surpassed investment in hydrocarbons every year since 2016.
Consumers are demanding change. Communities are demanding change. Investors are demanding change. All of us in this room have the power to manage this transition responsibly and urgently.
A quote from Jennifer Granholm, US Secretary of Energy
In an emailed statement, Keith Stewart, a strategist at Greenpeace Canada, said do not be surprised by Amin Nasser's statements.
The truth is that we already have other, more affordable solutions than oil and natural gas in terms of transport, heating homes and producing electricity.
