Oil and gas cannot be removed from the energy portfolio

According to Energy Press, Amin Nasser, the CEO of Aramco, during a round table organized by the Platts Institute in Houston, Texas, USA, emphasizing that in the real world, while facing five hard realities, the energy transition strategy is clearly in most fronts. It is a failure, he emphasized: “an urgent review of the energy transition strategy is needed, and I suggest that we should abandon the dream of gradually eliminating oil and gas and instead invest in options that adequately reflect the assumptions of real demand.” Last year, the Paris-based International Energy Agency predicted that the peak demand for oil, gas and coal would be in 2030, and Nasser said in this regard: It is unlikely that the demand will reach its peak soon, let alone in 2030.
I suggest that the International Energy Agency, which is now focusing on the demand in the United States and Europe, should also focus on the demand of developing countries. The CEO of Aramco stated: Despite the world’s investment of more than 9.5 trillion dollars in the past two decades, alternative energy sources have not been able to replace hydrocarbons on a significant scale. Currently, wind and solar energy supply less than 4% of the world’s energy needs, while the penetration rate of electric cars is less than 3%. Nasser reminded: Meanwhile, the share of hydrocarbons in the world’s energy composition in the 21st century has decreased from 83% to 80%. During this period, the global energy demand has increased by 100 million barrels per day of crude oil equivalent and will reach its highest level this year. He said about the development of natural gas in the new century and its role in reducing greenhouse gas emissions: The global consumption of natural gas has grown by 70% since the beginning of the century. Two-thirds of the reduction in carbon emissions in the United States has come from the transition from coal to natural gas.

The CEO of Aramco said about the future without oil and gas: the picture of the future that some have drawn is difficult. About the global warming strategy, Nasser said that the world should focus more on the reduction of oil and gas greenhouse gas emissions in addition to the development of renewable energy. Efficiency improvements alone have reduced global energy demand by nearly 90 million barrels of oil equivalent per day in the past 15 years, while wind and solar energy have only replaced 15 million barrels of oil per day. The words of the CEO of Aramco have become the media when Fatih Birol, the head of the International Energy Agency, said in response to the Financial Times: Technologies such as solar, wind and electric cars are increasingly replacing the need for fossil fuels and reducing greenhouse gas emissions. The heads of the energy committees of the US Senate and House of Representatives, both from the Republican Party, sent letters to Birol, accusing the International Energy Agency of becoming an “incentive” for energy transfer to the detriment of the agency’s main goal, which is to ensure energy security.