The energy shock sparked by the war in Ukraine has shown the need to overhaul green energy transition plans and maintain investment in oil and gas production, according to Saudi Aramco’s chief executive, Report informs referring to the Financial Times.
Speaking on the sidelines of the World Economic Forum in Davos, Amin Nasser said under-investment in hydrocarbon projects, which are intended to help the world reach net zero emissions by 2050, had left the industry unable to guarantee affordable energy supplies because little had been done to curb demand.
“The crisis is just indicating to us [that] you are running the whole world with not enough spare capacity,” Nasser told the Financial Times, referring to the amount of additional oil and gas that can be quickly pumped to keep pace with spikes in demand or a sudden disruption to existing supplies.
“Instead of really working on a transition that will help the world by 2050, we are pushing the world to more coal because we are not taking seriously the issue of energy security, affordability and availability,” Nasser said.
Current global oil demand is 100 million barrels a day “even in a troubled world”, Nasser said, adding that it could rise by another 5 million b/d once aviation and road transport returned to pre-coronavirus pandemic levels.
“The 100-million-barrel system, because of lack on investment, is really fragile in terms of its ability to cope with any unforeseen interruptions that might happen,” Nasser said.
https://report.az/en/energy/energy-shock-shows-need-to-rethink-green-transition-aramco-chief-says/