Saudi Aramco says global energy transition goals are ‘unrealistic’

Saudi Aramco says global energy transition goals are ‘unrealistic’

AFP / Riyadh

Oil giant Saudi Aramco’s chief on Tuesday blasted “unrealistic” energy transition plans, calling for a “new global energy consensus”, including ramped-up investments in fossil fuels to address painful shortages.

Speaking at a conference in Switzerland, Amin Nasser, head of the world’s biggest crude producer, lamented a “deep misunderstanding” of what caused the current energy crunch and said a “fear factor” was holding back “critical” long-term oil and gas projects.

“When you shame oil and gas investors, dismantle oil- and coal-fired power plants, fail to diversify energy supplies (especially gas), oppose LNG receiving terminals, and reject nuclear power, your transition plan had better be right,” he said.

“Instead, as this crisis has shown, the 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.”

The primarily state-owned Saudi Aramco last month unveiled record profits of $48.4bn in the second quarter of 2022, after Russia’s invasion of Ukraine and a post-pandemic surge in demand sent crude prices soaring.

Yet even as it benefits from the current energy crisis, Riyadh has long complained that focusing on climate