Alternative energy sources will not be able to replace oil and gas overnight as part of the world's energy transition efforts, with additional hydrocarbon investment required to meet growing demand, Saudi Aramco's chief executive has said.
Investment in oil and gas has fallen sharply, with upstream investment at about $400 billion in 2022, less than half of the peak in 2014, Amin Nasser said at the Saudi Capital Markets Forum.
“The primary reason: pressure from multiple directions to discontinue all new investments in oil and gas. Pressure based on what I strongly believe are flawed assumptions and arguments,” he said.
“Popular energy transition narratives paint a picture of a utopian world where alternatives are ready to replace oil and gas overnight.”
They also assume that “less-than-reliable” electric grids in many developing countries can be transformed instantly.
But this is “rhetoric” rather than “the reality”, Mr Nasser said.
“As the energy crisis in Europe has demonstrated, alternatives are not ready to shoulder the heavy burden of global demand,” he said.
“Indeed, the world will continue to depend on oil and gas for the foreseeable future, particularly in sectors such as heavy transport, heavy industry and power generation.”
Capital investment in renewables increased “significantly” and is estimated to have hit $494 billion in 2022, surpassing that of upstream oil and gas at $446 billion for the year, Rystad Energy said in a report in October.
However, with growing oil demand, the industry requires “huge investments” of $12.1 trillion until 2045 to raise production and meet demand, Opec said in a report in November.
Demand for oil as a primary fuel is expected to increase to 101 million barrels of oil equivalent a day in 2045, from 88 million barrels of oil equivalent a day in 2021, with its share in the energy mix dropping to 29 per cent, from 31 per cent during the period, the oil producers' group said.
“From my perspective, for a less-risky global energy transition, everyone — including capital markets — must take a more realistic view of how the global energy transition will unfold,” Mr Nasser said.
The increasing emphasis on investing in environmental, social and governance (ESG) initiatives is required, he said.
The opportunities to invest in energy transition are also growing, with up to $275 trillion in cumulative spending required by 2050 to achieve net-zero ambitions, according to some estimates.
“However, if ESG-driven policies are implemented with an automatic bias against any and all conventional energy projects, the resulting underinvestment will have serious implications — for the global economy, for energy affordability and for energy security.”
As the energy crisis in Europe has demonstrated, alternatives are not ready to shoulder the heavy burden of global demand
Amin Nasser,
Saudi Aramco chief executive
While $1.1 trillion was committed last year towards the global energy transition, investment in two critical areas — carbon capture and storage, and hydrogen — accounted for less than 1 per cent of this total.
The current “investment imbalance is leading us down a dangerous path”, he said.
“Capital markets have an obvious opportunity to concurrently address the 'trilemma' of energy affordability, energy security and sustainability,” Mr Nasser said.
This will involve restoring investment in vital conventional energy sources, increasing investment in technology that reduces the carbon footprint of oil and gas, and investing in new energy sources such as renewables, as well as blue and green hydrogen, he said.
England squads for Test and T20 series against New Zealand
Test squad: Joe Root (capt), Jofra Archer, Stuart Broad, Rory Burns, Jos Buttler, Zak Crawley, Sam Curran, Joe Denly, Jack Leach, Saqib Mahmood, Matthew Parkinson, Ollie Pope, Dominic Sibley, Ben Stokes, Chris Woakes
T20 squad: Eoin Morgan (capt), Jonny Bairstow, Tom Banton, Sam Billings, Pat Brown, Sam Curran, Tom Curran, Joe Denly, Lewis Gregory, Chris Jordan, Saqib Mahmood, Dawid Malan, Matt Parkinson, Adil Rashid, James Vince
A new relationship with the old country
Treaty of Friendship between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates
The United kingdom of Great Britain and Northern Ireland and the United Arab Emirates; Considering that the United Arab Emirates has assumed full responsibility as a sovereign and independent State; Determined that the long-standing and traditional relations of close friendship and cooperation between their peoples shall continue; Desiring to give expression to this intention in the form of a Treaty Friendship; Have agreed as follows:
ARTICLE 1 The relations between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates shall be governed by a spirit of close friendship. In recognition of this, the Contracting Parties, conscious of their common interest in the peace and stability of the region, shall: (a) consult together on matters of mutual concern in time of need; (b) settle all their disputes by peaceful means in conformity with the provisions of the Charter of the United Nations.
ARTICLE 2 The Contracting Parties shall encourage education, scientific and cultural cooperation between the two States in accordance with arrangements to be agreed. Such arrangements shall cover among other things: (a) the promotion of mutual understanding of their respective cultures, civilisations and languages, the promotion of contacts among professional bodies, universities and cultural institutions; (c) the encouragement of technical, scientific and cultural exchanges.
ARTICLE 3 The Contracting Parties shall maintain the close relationship already existing between them in the field of trade and commerce. Representatives of the Contracting Parties shall meet from time to time to consider means by which such relations can be further developed and strengthened, including the possibility of concluding treaties or agreements on matters of mutual concern.
ARTICLE 4 This Treaty shall enter into force on today’s date and shall remain in force for a period of ten years. Unless twelve months before the expiry of the said period of ten years either Contracting Party shall have given notice to the other of its intention to terminate the Treaty, this Treaty shall remain in force thereafter until the expiry of twelve months from the date on which notice of such intention is given.
IN WITNESS WHEREOF the undersigned have signed this Treaty.
DONE in duplicate at Dubai the second day of December 1971AD, corresponding to the fifteenth day of Shawwal 1391H, in the English and Arabic languages, both texts being equally authoritative.
Signed
Geoffrey Arthur Sheikh Zayed
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Cyber crime - This includes fraud, impersonation, scams and deepfake technology, tactics that are increasingly targeting infrastructure and exploiting human vulnerabilities.
Cyber terrorism - Social media platforms are used to spread radical ideologies, misinformation and disinformation, often with the aim of disrupting critical infrastructure such as power grids.
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The Baghdad Clock
Shahad Al Rawi, Oneworld
On racial profiling at airports
MATCH INFO
Rugby World Cup (all times UAE)
Third-place play-off: New Zealand v Wales, Friday, 1pm
Final: England v South Africa, Saturday, 1pm
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
The%20Specs
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
RESULT
Los Angeles Galaxy 2 Manchester United 5
Galaxy: Dos Santos (79', 88')
United: Rashford (2', 20'), Fellaini (26'), Mkhitaryan (67'), Martial (72')
FIXTURES
All kick-off times UAE ( 4 GMT)
Friday
Sevilla v Levante (midnight)
Saturday
Athletic Bilbao v Real Sociedad (7.15pm)
Eibar v Valencia (9.30pm)
Atletico Madrid v Alaves (11.45pm)
Sunday
Girona v Getafe (3pm)
Celta Vigo v Villarreal (7.15pm)
Las Palmas v Espanyol (9.30pm)
Barcelona v Deportivo la Coruna (11.45pm)
Monday
Malaga v Real Betis (midnight)
Global state-owned investor ranking by size
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1.
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United States
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2.
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China
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3.
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UAE
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4.
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Japan
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5
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Norway
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6.
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Canada
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7.
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Singapore
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8.
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Australia
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9.
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Saudi Arabia
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10.
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South Korea
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