Saudi Aramco CEO says taxing oil companies not long-term fix for energy crisis

Amin Nasser President and CEO of Saudi Armaco 

Saudi Aramco’s CEO, Amin Nasser, said that taxing oil companies is not a long-term solution for the global energy crisis.

“The real causes of energy insecurity are underinvestment in oil and gas, no ready alternatives and no back-up plan. Increases in oil and gas investments this year are too little, too late and too short-term,” Reuters reported, citing Nasser’s speech at a forum in Switzerland.

“The response to global energy crisis so far shows deep misunderstanding of how we got there,” he noted, adding that even if the conflict in Ukraine ended today, energy crisis would not end.

He added that this crisis has shown the transition plan was just a chain of sandcastles that waves of reality have washed away. And billions around the world now face the energy access and cost of living consequences that are likely to be severe and prolonged.

When the global economy recovers, demand can be expected to rebound further, eliminating the little spare oil production capacity out there. And by the time the world wakes up to these blind spots, it may be too late to change course. 

“In my view, the best help that policy makers and every stakeholder can offer is to unite the world around a much more credible new transition plan, driving progress on the three strategic pillars I have outlined this morning,” Nasser concluded.