Aramco CEO tells CERAWeek the world needs a better energy transition plan

The world needs a better model for the energy transition, one resilient enough to absorb geopolitical shocks and pragmatic enough to see oil as critical for energy affordability over the long-term, Saudi Aramco president and CEO Amin Nasser told delegates at CERAWeek 2022, the world's premier energy conference.

“The global energy crisis has been accelerated by the tragic situation unfolding in Ukraine,” he said in Houston. “It has exposed the limitations of current energy policies and is a bleak reminder of the impact that geopolitics can have on fragile energy transition plans.”

Speaking to an audience that included policymakers, executives and bankers from around the globe, Nasser said it was time to refine the world's energy transition plan to ensure it is practical, stable, and inclusive — while still meeting climate goals.

Call for new energy transition forum

“Today I call for a purpose-built energy transition forum,” he said. “The precise shape and form will need to be discussed. But it has to allow open debate with all stakeholders and all viewpoints at the table. And it has to bridge the gap between idealism and pragmatism.”

A smarter model would revert mixed policy signals that have caused oil and gas investments to plummet, leaving global supplies stretched thin at a time when renewables lack scale to shoulder the burden, Nasser said.

“We need consensus on the essential role of oil and gas with lower emissions, working side-by-side with alternatives to meet the rising global call on energy and deliver on net zero ambitions,” he added.

Nasser said the world needs to embrace new uses for hydrocarbons such as blue hydrogen and technologies that capture and sequester carbon. Without these new approaches, it will be difficult to reach net zero.

He emphasized that the engineering and scientific prowess of oil and gas companies could be leveraged to create new, effective solutions that strengthen current approaches to a lower carbon future.

“We are eager to work with every stakeholder and partner, across the energy industry and beyond, on solutions with real impact,” he said. “We just need an objective and resilient transition plan to guide our collective efforts.”