At the CERAWeek conference in Houston, Saudi Aramco’s President and CEO, Amin Nasser, delivered a sharp critique of current global energy transition strategies, labelling them as “self-destructive” and warning of potential economic and energy security consequences.
Nasser emphasized that the prevailing approach, which aims to rapidly phase out conventional energy sources in favour of immature alternatives, is flawed. He argued that such strategies are not only unrealistic but also detrimental to global energy stability. “The greatest transition fiction was that conventional energy could be almost entirely replaced, virtually overnight,” Nasser remarked, highlighting that hydrocarbons still account for over 80% of primary energy in the US, nearly 90% in China, and more than 70% in the EU.
He further underscored that new energy sources should complement, not replace, existing ones. “New sources add to the energy mix and complement existing sources; they do not replace them,” Nasser stated, pointing out that these alternatives currently cannot even meet the growth in demand.
To address these challenges, Nasser called for a new global energy model based on three core principles:
1. Balanced Investment: He advocated for investments in all energy sources to meet rising global demand in a balanced and integrated manner. Nasser highlighted that Aramco invested more than $50 billion last year in both conventional and renewable energy projects, with a target to invest in up to 12 gigawatts of solar and wind energy by 2030.
2. Inclusivity: The new model should genuinely serve the needs of both developed and developing nations, especially concerning technology access and energy equity.
3. Delivering Real Results: Nasser emphasized the importance of achieving tangible outcomes, particularly in reducing greenhouse gas emissions. He stressed that this does not mean stepping back from global climate ambitions but prioritizing technologies that drive efficiency, lower energy use, and further reduce emissions from conventional energy sources.
Highlighting the urgency of the situation, Nasser cautioned that neglecting conventional energy sources in the transition process could lead to dire outcomes, describing it as a “fast track to dystopia.” He also criticized the belief that traditional energy sources could be rapidly phased out, stating that such assumptions are unrealistic and potentially harmful.
In his address, Nasser also touched upon the financial aspects of the energy transition. He noted that annual funding needs of up to $8 trillion are required for global climate action. He called for extensive deregulation and greater incentives for financial institutions to provide unbiased financing, ensuring that investments are directed towards both conventional and alternative energy sources.
Nasser’s remarks come at a time when global energy policies are under intense scrutiny. In Europe, policymakers have slowed the rollout of clean energy policies and delayed targets as energy costs soared following geopolitical tensions. European oil majors have also pulled back from plans to build out greener technologies due to profitability concerns.
