Calls to shut down investment in hydrocarbons could cause “chaos” in the energy industry and policies alone will not be enough to aid the global energy transition, Saudi Aramco’s chief executive Amin Nasser said on Monday.
Referencing the debate around peak oil demand, Mr Nasser said there was a growing discrepancy between “facts on the ground” and policies.
“A policy will not help you to transition … it will set the rules. But at the end of the day, if technological readiness is not there, or competitiveness is not available, it won’t happen,” he said at the World Energy Congress in Rotterdam.
Mr Nasser’s remarks come at a time when Opec and the International Energy Agency have been increasingly at odds over their differing assumptions regarding peak oil and scenarios for demand growth.
The Paris agency has said that the rising share of solar and wind in electricity generation as well as growing electric vehicle sales would result in oil and gas demand plateauing before 2030.
Opec has contested the agency’s data and criticised the watchdog for jeopardising energy security by urging countries to halt investments in new oil and gas projects.
The Aramco chief reiterated that a “one-size-fits-all” approach would not work for the energy transition, adding that energy affordability should be a significant concern for governments and politicians.
The war in Ukraine pushed natural gas prices to highs in 2022, prompting many countries in Europe and Asia to increase their reliance on highly polluting coal.
“You need oil, natural gas and alternatives. If you don’t have enough resources, prices will shoot [up] and you will end up using more coal,” Mr Nasser said.
The quicker adoption of renewable energy in the Global North was mainly due to government incentives that have encouraged consumers to shift to cleaner forms of energy, he said.
“These incentives are not available in the Global South, with the exception of China.”
Earlier this year, Aramco, the world’s largest oil exporting company, scrapped plans to enhance production capacity to 13 million barrels per day by 2027, from 12 million bpd.
Analysts said escalating costs, ample spare capacity and weakening demand for crude amid the adoption of renewable energy and electric vehicles may have influenced the company’s decision.
Aramco has been looking to expand its presence in liquefied natural gas and hydrogen to reduce its reliance on crude exports alone.
Mr Nasser said that more innovation and technology would be required to bring down the cost of hydrogen, which is expected to be a critical fuel of the future.
“An offtake agreement for $200 or $400 per barrel of oil equivalent [for blue hydrogen and green hydrogen is] very expensive … but this is the technology that is available today … this is how much it will cost you to get a decent return on your investment,” he added.
World Energy Council chief executive Angela Wilkinson said the world needs to rid itself of the “moon shot mentality” and approach energy transition realistically.
“We can either engage with the reality of energy transitions, or we can keep going with the global moon shot language,” she said.
The term originates from the goal set by former US president John F Kennedy in 1961 to land a man on the moon and return him safely to Earth.
“Transition is a process. It's not a destination. We talk about it as though it's the end of something. It's a step along the way to whatever comes next, and there's no one size fits all,” Ms Wilkinson said.
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
Profile
Co-founders of the company: Vilhelm Hedberg and Ravi Bhusari
Launch year: In 2016 ekar launched and signed an agreement with Etihad Airways in Abu Dhabi. In January 2017 ekar launched in Dubai in a partnership with the RTA.
Number of employees: Over 50
Financing stage: Series B currently being finalised
Investors: Series A - Audacia Capital
Sector of operation: Transport
About Seez
Company name/date started: Seez, set up in September 2015 and the app was released in August 2017
Founder/CEO name(s): Tarek Kabrit, co-founder and chief executive, and Andrew Kabrit, co-founder and chief operating officer
Based in: Dubai, with operations also in Kuwait, Saudi Arabia and Lebanon
Sector: Search engine for car buying, selling and leasing
Size: (employees/revenue): 11; undisclosed
Stage of funding: $1.8 million in seed funding; followed by another $1.5m bridge round - in the process of closing Series A
Investors: Wamda Capital, B&Y and Phoenician Funds
Adele: The Stories Behind The Songs
Caroline Sullivan
Carlton Books
COMPANY PROFILE
Name: Mamo Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua Based: Dubai, UAE Number of employees: 28 Sector: Financial services Investment: $9.5m Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors. More from Neighbourhood Watch
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
UAE currency: the story behind the money in your pockets
Muguruza's singles career in stats
WTA titles 3
Prize money US$11,128,219 (Dh40,873,133.82)
Wins / losses 293 / 149
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Last 10 winners of African Footballer of the Year
2006: Didier Drogba (Chelsea and Ivory Coast)
2007: Frederic Kanoute (Sevilla and Mali)
2008: Emmanuel Adebayor (Arsenal and Togo)
2009: Didier Drogba (Chelsea and Ivory Coast)
2010: Samuel Eto’o (Inter Milan and Cameroon)
2011: Yaya Toure (Manchester City and Ivory Coast)
2012: Yaya Toure (Manchester City and Ivory Coast)
2013: Yaya Toure (Manchester City and Ivory Coast)
2014: Yaya Toure (Manchester City and Ivory Coast)
2015: Pierre-Emerick Aubameyang (Borussia Dortmund and Gabon)
2016: Riyad Mahrez (Leicester City and Algeria)
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
Tree of Hell
Starring: Raed Zeno, Hadi Awada, Dr Mohammad Abdalla
Director: Raed Zeno
Rating: 4/5
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
