Prime Highlights:
- Aramco CEO Amin Nasser says the global energy shift is more of an “energy addition” than a full transition, with oil and gas remaining essential for decades.
- The company is pursuing a dual strategy: expanding its core oil, gas, and chemicals business while investing in technology and digital infrastructure.
Key Facts:
- Global oil demand is expected to grow by 700,000 to 800,000 barrels per day through 2026, according to Fitch Ratings.
- Energy demand surged in 2024 across all major sources, including renewables, fossil fuels, and nuclear, highlighting that renewable expansion alone cannot meet rising consumption (International Energy Agency).
Key Background:
A global review of the energy shift is underway, with long-term investment in oil and gas still essential to meet rising energy demand, says Amin Nasser, CEO of Saudi Aramco.
At the Energy Intelligence Forum in London, Nasser said future energy policies should be practical and meet growing global demand. He argued that much of the promised progress in transitioning to renewables has yet to materialize, and warned of unintended consequences.
Nasser explained that the world isn’t fully shifting away from fossil fuels; instead, new energy sources are being added, and oil and gas will remain important for many years.
Industry data appears to support his view. Fitch Ratings projects global oil demand will grow by around 700,000 to 800,000 barrels per day through 2026. The International Energy Agency reported that energy demand rose in 2024 across all major sources, renewables, fossil fuels, and nuclear, showing that renewable growth alone cannot keep up with rising consumption.
Even in developed countries, challenges remain. The European Environment Agency noted that the EU is behind on several energy and climate goals, highlighting difficulties in policy execution and public support.
Aramco is concentrating on two aspects despite these obstacles, which are expanding its oil, gas, and chemicals business and investing in technology and digital systems. Nasser said the company’s low production costs, large resource base, and low carbon emissions give it a strong position in the market.
Aramco is also scaling up investments in natural gas, particularly unconventional reserves, and sees chemicals as a strategic growth area. Additionally, the company is deploying artificial intelligence and digital solutions to improve efficiency and reduce carbon and methane emissions.
“Our focus is on value creation through technology development and strategic positioning in new energies, ready to scale when commercially viable,” Nasser said.
The Energy Intelligence Forum, an annual gathering of energy, political, and financial leaders, this year focused on the complexities of the global energy transition and the impact of protectionism on the sector.
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