Countries across the world are shifting to renewable energy sources. As leaders of oil-producing countries convene at the ongoing 24th World Petroleum Congress in Calgary, Canada, key Saudi officials have emphasized key energy transition issues, underscoring the importance of energy security and affordability.
Potential consequences
In his keynote speech, Amin Nasser, chief executive officer (CEO) and president of Saudi Arabian Oil Co. (Saudi Aramco), urged global leaders to adopt a comprehensive approach to the global energy transition. He underscored the need for a realistic, multi-dimensional plan that encompasses multiple sources at varying speeds.
The Aramco CEO also highlighted the potential repercussions of neglecting energy transition issues including energy security and affordability. He noted that “while much of the Global North is focusing on environmental sustainability, the priority for many in the Global South is economic survival.”
“Transition planning has not sufficiently recognized this clear need for distinctive solutions, and a widening divide is an inevitable result,” he remarked.
He also emphasized the danger of prematurely phasing out conventional sources of energy.
“The current transition shortcomings are already causing mass confusion across industries that produce and/or rely on energy. Long-term planners and investors do not know which way to turn. It is increasing the risk of acute supply-demand imbalances in conventional energy, and therefore an even more serious energy crisis where countries and people, not just assets, are stranded,” he stated.
“We are talking about the complete transformation of a $100 tn global economy today. One that is likely to roughly double in size by 2050, with close to an additional two billion energy consumers. In short, the re-invention of our entire energy-based way of life in less than 30 years. Let us be inspired by that, but understand it means making history,” the Aramco CEO further shared.
During this occasion, Nasser received the prestigious Dewhurst Award from the World Petroleum Council.
Read: OPEC+ cuts to tighten oil market in Q4 2023: IEA
Energy security
At the same event, Saudi Minister of Energy Prince Abdulaziz bin Salman pointed out the importance of energy security on a global scale. He then commended the Organization of the Petroleum Exporting Countries (OPEC) for its “benign” conduct. In particular, he cited the group’s focus on minimizing market volatility rather than targeting specific oil prices.
Additionally, he stressed the need for light-handed regulation in worldwide energy markets. Recently, Saudi Arabia and Russia jointly extended voluntary supply cuts of 1.3 mn barrels of oil per day until the end of the year.
The World Petroleum Congress, themed “Energy Transition: The Path to Net Zero,” will continue until September 21.
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