Amin Nasser, CEO of Saudi Aramco, the world’s largest energy company, stated that global demand for oil will not slow any time soon. Speaking at the CERAWeek conference in Houston, Nasser urged policymakers to ensure sufficient investment in oil and gas to meet demand. Moreover, he challenged the prevailing narrative of rapidly phasing out fossil fuels in favor of alternative energy sources.
Oil demand projections
Nasser expects oil demand to reach a record high of 104 million barrels per day in 2024, dismissing the possibility of an oil and gas peak in the next 10 years. He explains that despite the growing investment in renewable and alternative energy sources, hydrocarbons are irreplaceable. Therefore, Nasser urges policymakers to adequately invest in oil and gas in order to meet the current realistic demand. Moreover, he emphasized that the rising demand from developing economies could support oil demand growth until 2045.
Read: Saudi Aramco posts second highest ever net income of $121.3 billion in 2023
Nasser’s forecasts fall in line with the demand expectations of the Organization of the Petroleum Exporting Countries (OPEC). However, it contrasted with the 2030 forecast for peak oil demand from the International Energy Agency (IEA).
Commenting on the environmental impact of oil and gas, Nasser stated that reducing greenhouse gas emissions from hydrocarbons using carbon capture and other technologies has achieved better results than alternative forms of energy.
Navigating shipping challenges
In addition to demand concerns, the oil market has been impacted by regional tensions in the Red Sea. Amid these escalating tensions, Nasser highlighted the impact of shipping disruptions on global markets. Despite these challenges, Saudi Aramco remains resilient, leveraging infrastructure such as the East-West pipeline to mitigate disruptions. Moreover, Europe emerged as a bigger market for Saudi Aramco following disruptions in the Red Sea.
Nasser reaffirms Saudi Aramco’s readiness to address unexpected disruptions, boasting a spare capacity of 3 million barrels per day. This readiness reflects the company’s commitment to ensuring stability in global energy supply chains amidst geopolitical uncertainties and logistical challenges.
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