Aramco is now looking to invest in new energy sources outside Saudi Arabia, according to Saudi Aramco CEO Amin H. Nasser.
“Failure to invest in hydrocarbon energy will end with an increase in demand for coal,” Nasser added, in his speech on Monday during the session entitled “Energy Transformation in Companies,” which is part of the World Economic Forum’s special meeting.
Energy Transition Path & Challenges
Nasser stressed the need for fair energy transition programs that do not exclude developing countries, explaining that solar and wind energy provide 4% of global energy sources. He pointed out that 80% of the demand for hydrocarbon energy will come from poorer countries by 2050.
Moreover, he said that energy transition is an urgent priority for everyone, however, there is a need for realistic and beneficial programs for everyone in the context of the transition, adding that although 85% of the world’s population live in the countries of the South. Only 5% of investments in renewable energy go to those countries, while 80% of them go to the G20 countries.
The CEO explained that only 4% of the world’s total energy comes from the sun and wind. From 2000 to 2013 fossil fuels increased by about 100 million barrels, which means that we are not investing in renewable energy. He stressed the need for other energies, saying the conflict between Russia and Ukraine caused an increase in oil and gas consumption.
Last month, he emphasized the urgent need for a realistic and practical energy transition path encompassing oil, gas, and new energy sources. He delineated several challenges, including the need for global coordination, the inadequacy of alternative energy sources, financial constraints, escalating energy demands, and the imperative of reducing emissions.
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