Saudi Aramco’s president and CEO Eng. Amin H. Nasser has called for a fundamental shift in global energy transition planning, advocating for a more balanced approach that allows both traditional and renewable energy sources to grow while maintaining a focus on climate goals.
Speaking at the CERAWeek 2025 conference in Houston, Texas, Nasser stated that the current strategy—prioritizing renewable and alternative energy while imposing restrictive regulations on traditional energy—has proven ineffective.
CERAWeek, an annual gathering of energy leaders, government officials and industry executives, is a platform for discussions on energy security, supply, climate policy, technology and sustainability. This year’s conference, “Moving Ahead: Energy Strategies for a Complex World,” has attracted over 10,000 participants from over 2,050 companies and 80 countries, with more than 1,400 expert speakers.
Traditional energy sources crucial to meet global demand
During his participation, Saudi Aramco’s president noted that if imposing restrictive regulations on traditional energy continues, the world will need to invest an additional $6-$8 trillion annually. He also cautioned that the current path could lead to a bleak future without change.
“The biggest illusion about the energy transition is the belief that traditional energy can be phased out overnight. Traditional sources still supply over 80 percent of the energy in the United States, about 90 percent in China, and more than 70 percent in the European Union,” Nasser added.
Saudi Aramco’s president added that new energy sources do not replace traditional ones; they complement them. “New energy sources cannot even meet the growth in demand. Effective traditional energy sources are being discarded in irrational ways. This is a fast track to dystopia—a future marked by crisis and hardship,” he added.
Renewable energy generation to grow 14 percent annually by 2027
The Saudi Aramco president’s comments come in light of a major global shift towards renewable energy. The International Energy Agency (IEA), in its most recent ‘Electricity 2025’ report, has forecasted that renewable energy growth in the Middle East will experience substantial expansion in the upcoming years.
Renewable generation is anticipated to increase by approximately 14 percent annually from 2025 to 2027, starting from a low baseline, with its share expected to rise from 5 percent to 7 percent, as noted in the report.
The report also indicated that gas-fired generation saw an increase of 2.9 percent in 2024, remaining the primary source of power in the region. This sector is expected to accelerate to an average annual growth of 5.3 percent during 2025-2027, facilitated by ongoing fuel switching from oil to gas in accordance with government policies, with its share of the electricity mix projected to grow from 68 percent to 73 percent.
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Oil demand to grow 1.3 million barrels per day
Earlier this year, Saudi Aramco’s president expressed optimism regarding the oil market, stating that he anticipates an increase in demand of an additional 1.3 million barrels per day this year.
Nasser addressed inquiries regarding the implications of U.S. President Donald Trump’s energy policies, which may lead to a rise in U.S. hydrocarbon production. He indicated during a conversation with Reuters at the World Economic Forum in Davos, that oil demand in 2025 is projected to reach nearly 106 million barrels per day, building on an average of approximately 104.6 million barrels per day in 2024.
“We still think the market is healthy … last year we averaged around 104.6 million barrels (per day), this year, we’re expecting an additional demand of about 1.3 million barrels … so there is growth in the market,” Nasser remarked.
Regarding whether China and India have requested greater oil supplies from Saudi Arabia due to the sanctions, Nasser clarified that Aramco operates within the production limits set by the Kingdom’s energy ministry. Currently, Saudi Arabia is producing at approximately three-quarters of its capacity, adhering to agreements with OPEC+ to maintain market stability.
