Saudi Aramco Chief: Current energy crisis caused by unrealistic transition plan

SHARM EL-SHEIKH-Amin Nasser, president and CEO of Saudi Aramco, said the unrealistic transformation plan in the energy sector has caused the current supply crisis.
Amin Nasser, president and CEO of Saudi Aramco addressing the opening session of the Saudi Green Initiative 2022 Forum being held on the sidelines of the COP27 climate summit in Sharm El-Sheikh on Friday.

Saudi Aramco, officially the Saudi Arabian Oil Company or simply Aramco, is a Saudi Arabian public petroleum and natural gas company based in Dhahran. As of 2020, it is one of the largest companies in the world by revenue.

Saudi Aramco traces its beginnings to 1933 when a Concession Agreement was signed between Saudi Arabia and the Standard Oil Company of California (SOCAL). A subsidiary company, the California Arabian Standard Oil Company (CASOC), was created to manage the agreement.

The work began right away. After surveying the Saudi desert for oil, drilling began in 1935. Following years of effort with little to show for it, in 1937 SOCAL executives sought advice from their chief geologist, Max Steineke. Drawing on years of fieldwork, Steineke told them to keep on drilling.

In 1938, the foundation of the future prosperity of Saudi Arabia and the success of Saudi Aramco were realized with the commencement of commercial oil production from Dammam No. 7-the aptly named “Prosperity Well.”

Addressing the opening session of the Saudi Green Initiative 2022 Forum being held on the sidelines of the COP27 climate summit in Sharm El-Sheikh on Friday, he expressed concern that the investment in this vital sector is not sufficient to meet the long-term global demand for energy.

Nasser stressed the need to reach the optimal mix of conventional and renewable energy, while pointing out the need for working out rational policies in order to meet the ambitions. 

“After the coronavirus pandemic, we thought that the world would witness a decline in demand, but we see that demand has increased significantly since then,” he said.

In his speech, President and CEO of TotalEnergies Patrick Pouyanne said the company wants to grow in the gas sector and is investing heavily in it as it is a transitional fuel. 

“The world needs affordable energy, and the main factor is affordability, as the overall effects of the energy crisis are huge, and could destabilize the global economy,” he pointed out. (Agencies)

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