The head of the world’s largest oil company, Saudi Aramco, is warning of a headlong rush into renewable energy at the risk of sparking a potentially crippling — and preventable — energy crisis..The difference from other energy shocks of the past, according to CEO Amin Nasser, is the one unfolding will be driven by government policies that exclude oil and gas and not geopolitics..In keeping with the theme of the conference — pathways to net zero — Nasser said in his keynote address global emissions reduction is a priority of the rich northern countries while in the southern developing countries “it’s economic survival.”.Any path to net-zero under any scenario will require a “realignment” of attitudes and a recognition one size doesn’t fit all. Otherwise, the targets set out in the Paris Accord “are unlikely to be met.”.“Ladies and gentlemen, there never was a quick and easy single path to global climate goals. It is more like an epic voyage across a vast ocean,” he said..“But in terms of how we get there, I see many shortcomings in the current transition approach that can no longer be ignored. Until recently, the dominant narrative was based on an aggregation of unrealistic scenarios and assumptions. There has to be an equally and realistic target energy mix and timeline… phasing out conventional energy (fossil fuels) prematurely will put energy security at risk.”.Not only is Aramco the world’s second-largest company by revenue — after Walmart — it is by far and away the world’s largest oil producer at 10 million barrels per day (bpd)..Although he said Aramco supports global efforts to reduce emissions, Nasser said the present timelines — 2035 for Canada, 2050 for the rest of the world and 2060 and 2070 for China and India — are circumspect..As are projections for future oil demand..Nasser dismissed estimates from the International Energy Agency that oil demand will fall below 25 million bpd by 2040. With oil demand set to hit a record 104 million bpd in the second half of this year, Nasser said the concept of “peak demand is seriously flawed.”.“And this is in the middle of an economic downturn. I fail to understand how this is going to happen.”.Saudi has a huge presence at this year’s WPC and will be the host country for the 25th edition in 2026. To that end, Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman said his country is dedicated to maintaining “market balance” and energy security..Referencing past supply shocks of the 1970s, Abdulaziz said the purpose of the present round of OPEC production cuts is to maintain market stability, not impede economic security..“We’re not the OPEC-plus of the 1970s, he said, insisting the cartel is focussed on “humbleness.” Adding, “I feel sorry for them,” referring to critics who question the cartel’s commitment to the energy transition..Earlier this month, Saudi Arabia and Russia extended 1.3 million bpd of voluntary cuts until the end of the year. Abdulaziz noted that supply and demand is constantly in flux..“It’s always better to go by my motto, which is, ‘I believe it when I see it.’ When reality comes around as it’s been forecast, Hallelujah, we can produce more,” he said.
