Aramco CEO says energy transition is “failing” with oil industry as scapegoat at CERAWeek 2024

Devika Krishna Kumar and David Wethe, Bloomberg March 18, 2024

(Bloomberg) – Saudi Aramco Chief Executive Officer Amin Nasser said the global energy transition is “visibly failing” on most fronts as proponents overlook the impacts on consumers dependent on cheap, reliable fuels.

Saudi Aramco Chief Executive Officer Amin Nasser

In remarks at the opening day of the CERAWeek by S&P Global conference in Houston on Monday, Nasser lamented the way the oil industry has been painted as the transition’s “arch enemy.”

Nasser also predicted that a peak in worldwide oil demand is unlikely for “some time to come,” let alone by the 2030 benchmark laid out by some policymakers and executives. He sees crude demand reaching an all-time high during the second half of this year, with significant growth potential in developing countries.

Solar and wind supply less than 4% of the world’s energy supply, on a combined basis, and electric-vehicle penetration is less than 3%, according to Nasser. On the other hand, natural gas is still a mainstay, with demand growing by roughly 70% since the start of the century.

Without government subsidies, electric vehicles are as much as 50% more expensive than internal-combustion cars, he added. “They cannot be subsidized forever,” he said.

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