Global energy system ‘at an inflection point’: Aramco’s Nasser

Amin Nasser President and CEO of Saudi Aramco

Amin Nasser, President and of Saudi Arabian Oil Co. (Saudi Aramco), said the global energy system is “at an inflection point,” with potentially dire consequences for the world if the global community fails to take the right approach, backed by a set of effective measures.

“Of particular concern to our industry is the chronic underinvestment in oil and gas production in recent years, which has created a supply shortfall. If left unchecked, this could create energy insecurity, rampant inflation and social unrest,” Saudi Aramco’s 2021 Sustainability Report quoted Nasser as saying. 

The Russia-Ukraine crisis has exacerbated the challenge and, in parallel, underscored the extent to which renewable alternatives are nowhere near ready to bridge the gap, but the situation is unsustainable, Nasser added.

To effectively address climate change, a new way of thinking is needed. This starts with acknowledging three facts. First, even in the most aggressive climate models — some of which we discuss in this Report — the reality is that hydrocarbons will continue to play a vital role in the global energy system for the next several decades.

Second, the future is unevenly distributed. In some markets, demand for hydrocarbons will still exist beyond 2050. Finally, when it comes to oil and gas, the future now clearly belongs to the cheapest, least-carbon intensive producers, he explained.

Aramco has significant advantages, including a world-class operation that combines upstream low-carbon intensity, near-zero methane emissions and gas flaring and a relatively low cost of production. This is all underpinned by a 90-year track record of reliability and resilience, Nasser concluded.