Saudi Aramco CEO: "The Gradual Phase-Out of Oil and Gas Is Just an Illusion"

[Image source=Reuters Yonhap News]

Amin Nasser, CEO of Saudi Arabia's Aramco, the world's largest oil company, argued that the existing transition to renewable energy, which aims to phase out fossil fuels, has reached its limits and that demand for fossil fuels will continue in the future.

On the 18th (local time), CEO Nasser attended an energy conference in Houston, Texas, USA, where he stated, "The current energy transition strategy has noticeably failed," and insisted, "We must abandon the illusion of gradually phasing out oil and gas use and properly reflect realistic demand."

He explained, "Despite the world investing $9.5 trillion (approximately 1,268.2 trillion KRW) in renewable energy over the past 20 years, wind and solar power account for less than 4% of the total energy supply, and the adoption rate of electric vehicles is less than 3%. Global oil demand has increased by 100 million barrels per day even in the 21st century, and this year is expected to reach an all-time high."

On the 18th (local time), Amin Nasser, CEO of Saudi Aramco, spoke at an energy conference held in Houston, Texas, USA.
[Image source=AFP·Yonhap News]

CEO Nasser also refuted the International Energy Agency's (IEA) forecast last year that fossil fuel demand would peak after 2030, arguing that demand will instead surge. He said, "There is no sign that the peak in fossil fuel demand will occur soon, let alone by 2030," and added, "The IEA focuses only on demand in the US and Europe, but it is necessary to also focus on developing countries in the future."

The reason CEO Nasser can confidently present his forecast of increasing fossil fuel demand is that international oil prices have recently rebounded significantly. The price of West Texas Intermediate (WTI) crude oil fell to around $67 in June last year but has since risen back to around $80. On the 18th, it rose 1.96% from the previous session to $82.16. North Sea Brent crude is currently priced at $86.89.