The energy transition needs policy makers and regulators to come together with the energy industry in order for it to be successful, the CEO of Saudi Aramco said.
“We need to have a better dialogue where we are part of the discussion and the solution. We’ve seen what happened in Glasgow… we were kept away from the discussion,” Amin Nasser said, speaking on the sidelines of the International Petroleum Technology Conference (IPTC) on Monday.
Nasser added that “there is no solution” unless the biggest players in the energy industry can come together to be part of the transition “because we can really influence what can be done for the long term. So, we all need better collaboration, for all parties to work together.”
On the current meteoric rise in oil prices, Nasser said that his firm “don’t control the price, it’s market driven,” noting that “I’ve been saying for a number of years that there’s not enough investment in the sector.”
With supply low, the price of oil has increased significantly since the start of the year, with Brent prices up 20% since the start of the year. The industry mostly slashed capital expenditure and shut in wells in 2020 in the face of declining oil prices due to the Covid-19 pandemic. The lack of investment has therefore impacted long-term supply in the sector.
Nasser noted that Aramco is already increasing its capacity now, while simultaneously investing heavily in gas. This gas, which is set for consumption in Saudi Arabia, will allow Aramco to export more crude to global markets, to the tune of almost a million barrels, the CEO said.
“We are doing our share to minimise the impact on the markets by increasing our supply. But at the same time, we need the others to do this,” he said.
On building more capacity, Nasser said: “It takes time to do the engineering all of that but we are in a full fledged in terms of delivering on our commitment to reach that level of sustained capacity.”
