The head of Aramco, the largest oil producer in the world, called out individuals who “shame oil and gas investors” and emphasized the necessity for a reliable energy transition strategy.
“When you shame oil and gas investors, dismantle oil- and coal-fired power plants, fail to diversify energy supplies (especially gas), oppose LNG receiving terminals, and reject nuclear power, your transition plan had better be right,” Amin Nasser said in a speech on Tuesday.
The Saudi executive described current energy transition plans as “just a chain of sandcastles that waves of reality have washed away.”
Policymakers and stakeholders should recognize that supply of conventional energy is still required over the long-term, Nasser said, on the back of increasing pressure for governments to find cleaner energy sources.
He explained how it was still important for investors to pour money into the oil and gas sectors, especially as billions around the world still face challenges in access to conventional energy.
“A fear factor is still causing the critical oil and gas investments in large, long-term projects to shrink, and this situation is not being helped by overly short-term demand factors dominating the debate,” the Aramco chief said.
He added: “Even with strong economic headwinds, global oil demand is still fairly healthy today, but when the global economy recovers, we can expect demand to rebound further, eliminating the little spare oil production capacity out there.”
“By the time the world wakes up to these blind spots, it may be too late to change course. That is why I am seriously concerned,” Nasser said.
Nasser was speaking at the Schlumberger Digital Forum in Switzerland, where high-ranking energy leaders globally talk about the challenges of the industry.
Despite the strong comments against oil and gas investment critics, Nasser said it is important to further reduce conventional energy’s carbon footprint and find more efficient energy use, with technology enabling both.
He also advocates “steadily complementing” current energy sources with newer, lower-carbon alternatives.
