Saudi Aramco CEO: ‘we should abandon the fantasy of phasing out oil and gas’

Oil is in the green at writing after Amin Nasser – the chief executive of Saudi Aramco said the global “energy transition strategy is failing on most fronts”.

CEO Nasser’s remarks at the CERAWeek 2024

Nasser called on the need for a “transition strategy reset” in an interview at the CERAWeek 2024.   

The chief executive also urged the world at the energy conference hosted by S&P Global in Houston, Texas to “abandon the fantasy of phasing out oil and gas and instead invest in them adequately”.

His proposal is based on what he called “realistic demand assumptions” on Monday.

Oil made a low of about $69 in December but have been on the rise ever since. At writing, it’s trading some 20% above that low at $82 and change.

CEO Nasser’s view on peak oil demand

International Energy Agency – a Paris-based autonomous intergovernmental organisation expects oil and gas demand to peak in 2030.

But its forecast is based on transatlantic demand only and does not particularly account for the developing world, as per Saudi Aramco CEO Amin Nasser. He, therefore, anticipates the peak oil and gas demand to be pushed even further than the end of this decade.

Note that the world has invested over $9.5 trillion in alternative energy over the past twenty years. Still, wind and solar makes up less than 4.0% of the total energy supply globally at writing.

Electric vehicles have also failed to penetrate more than 3.0% of the market so far.