Aramco considers energy sector needs realistically: Nasser

Aramco President & CEO Amin Nasser

The Saudi Arabian Oil Co. (Saudi Aramco) is considering the energy sector realistically, President and CEO Amin Nasser told the MENA Climate Week 2023.

He added that the company plans for the sector based on its future needs.

Aramco aims seeks to remove carbon from traditional energy sources, in addition to building renewable energy sources.

The traditional energy is the company's main project in the market, as it constitutes nearly 95% of the basic energy supplies, Nasser said, indicating that renewable energy is witnessing remarkable growth, but it started from a low base, representing around 5% of the basic energy at present.

He stated that Aramco recorded methane emissions of 0.06, which is well below the global industry average of 0.36. In addition, the company reduced CO2 emissions to around 10.3 kg per barrel of oil equivalent, compared to the industry average of 38 kg.

He added that the company plans to reduce emissions further by 2030 through investing in hydrogen, renewable energy sources, as well as carbon capture and storage, as a sustainability fund worth $1.5 billion was established to support these initiatives.

The oil giant plans to reach net-zero emissions by 2050 and reduce the carbon intensity of methane and carbon dioxide emissions by 15% by 2035, which is equal to eliminating nearly 52 million tons of carbon emissions.

The oil industry seeks to provide reliable energy supplies at reasonable prices, even amid economic crises and supply fluctuations, as oil companies work to fulfill demand and ensure adequate energy supplies. The goal is to reach 103 million barrels per day in the second half.

Blue hydrogen costs approximately $200-250 per barrel of oil equivalent, while green hydrogen costs around $400, the CEO said, highlighting the importance of government incentives to make hydrogen low-cost for various applications, including infrastructure.

Aramco invests in reducing emissions from fuel-powered cars, especially as this is an important market and represents 70% of the total global market. Moreover, the company focuses on improving the performance and efficiency of internal combustion engines; hence the electric vehicles (EVs) can meet global demand.

The oil giant uses carbon capture technologies, which have a promising future, but they are currently expensive and need more time and technology to cut the cost.