Financial Services Association, March 19 (Editor Zhao Hao) On Monday (March 18) local time, the international energy industry's high-end conference “Cambridge Energy Week” (CeraWeek) was held in Houston, the “energy capital” of the United States. The goal was to discuss energy transformation strategies in multiple dimensions, multiple speeds, and multiple sources.

On the first day of the conference, Saudi Aramco (Saudi Aramco) CEO Amin Nasser said that the energy transition is failing and that policymakers should abandon the illusion of “phasing out oil and gas” at this stage, as demand for fossil fuels will continue to rise in the next few years.

“In the real world, the current energy transition strategy has visibly failed in most directions because it goes against several real-world principles.” The head of the world's largest oil company said in an interview with the panel, “We urgently need to redefine our transition strategy.”

“My advice is this: we should abandon the fantasy of phasing out oil and gas and invest in them sufficiently to reflect actual needs.” Nasser's statement garnered applause from the audience. According to information, Texas in the US, where Houston is located, is also one of the world's important fossil fuel bases.

Amin Nasser (right) Source: social media

On Monday (March 18), international crude oil futures settlement prices increased by about 2%. WTI's April crude oil futures settlement price rose by $1.68, or 2.07%, to $82.72 per barrel. Brent crude oil futures for May closed up $1.55, or 1.81%, to $86.89 per barrel.

In October of last year, the International Energy Agency (IEA), headquartered in Paris, published the “2023 World Energy Outlook”. Based on the published policy scenario, demand for all fossil energy will peak in 2030. In response, Nasser said that demand is unlikely to peak in recent years, let alone 2030.

He added that despite investing over $9.5 trillion over the past 20 years, alternative energy sources are still unable to replace hydrocarbons on a large scale. He pointed out that currently wind energy and solar energy together account for less than 4% of the global energy supply, and the penetration rate of electric vehicles is less than 3%.

In comparison, the share of hydrocarbons in the global energy mix fell only from 83% to 80% in the 21st century. Nasser mentioned that global oil demand has exceeded 100 million b/d, and this year is expected to reach the highest level in history. It is worth mentioning that the IEA also acknowledged the figure of 100 million b/d.

He said that since the beginning of this century, the natural gas market has grown by 70%, and the shift from coal to natural gas is also a large part of the reason for the reduction in carbon emissions. “This is clearly not the future scenario that some people have portrayed; they are also beginning to acknowledge the importance of safe oil and gas supply.”

Nasser pointed out that the IEA only focuses on the needs of the US and Europe; this agency needs to pay more attention to developing countries. He believes that as the prosperity of developing countries in the global South increases, this region, which accounts for 85% of the world's population, will become a new driving force for oil and gas demand because they receive less than 5% of the investment in renewable energy.

He also said that in addition to renewable energy, the world should pay more attention to the field of “reducing oil and gas emissions,” and “we should only gradually adopt new energy sources and new technologies when they are truly ready, that is, they are economically competitive and have the right infrastructure.”

Two weeks ago, Saudi Aramco's earnings press release stated that the company is advancing a natural gas project with the goal of increasing gas production by more than 60% from 2021 levels by 2030.