Aramco CEO: Taxing companies is not a long-term solution to ‎the energy crisis

Eng. Amin bin Hassan Al-Nasser, President and Chief Executive Officer of Saudi Aramco, said today, Tuesday, that applying capping energy prices and imposing taxes on oil companies are not a long-term solution to the global energy crisis, as he regretted the continued lack of investments in the oil and gas sector.

“The increases (in oil and gas investments) this year are too little, too late and too short-lived,” he said in a keynote speech delivered today at the Schlumberger Digital Forum in Switzerland, noting that he was, in fact, very concerned. Oil and gas investments have declined significantly during the past ten years… There are fear factors that cause oil and gas investments to be reduced in large and long-term projects.

He continued, “The dominant debate at the moment is short-term investments that do not address long-term energy security issues. Although the global demand for oil is somewhat balanced at the present time, when the global economy recovers, the demand is expected to rise even more, consuming the small surplus of spare oil production capacity. By the time the world wakes up to these challenges, it may be too late to change course.”

In his speech, Eng. Al-Nasser stressed the importance of achieving a new global consensus of views and positions, identifying three strategic axes:

Recognition by policy makers and other stakeholders that abundant and affordable conventional energy supplies are still required in the long term; working to reduce carbon emissions from conventional energy and increase energy efficiency, while enabling technology in both; production of renewable energy and low-carbon energy that steadily complements the known traditional sources.

Highlighting the consequences of the lack of a reliable and balanced transformation plan, Engineer Al-Nasser said: “When oil and gas investors are blamed and difficulties are put in front of them, and oil and coal-fired power plants are dismantled, and when they fail to diversify energy supplies (especially gas) ), oppose the establishment of liquefied natural gas delivery stations, and reject nuclear energy, it is necessary to ensure that your plan for transformation is on the right foundations. But what happened, as this crisis showed, was just a series of sand castles that were washed away by the waves of reality. Now, billions of people around the world face the challenges of accessing reliable and affordable energy supplies, while at the same time facing a rising cost of living. These conditions are likely to be severe and long-term.”

On the world’s need to unite behind a new and credible energy transformation plan, Al-Nasser said: “While the pressure of the energy crisis is unfortunately intensifying, the societies of the world are in dire need of assistance. In my view, the best assistance policy makers and all stakeholders can provide is a world united around a new, more credible transformation agenda, and continuing efforts to advance in the three strategic axes I have outlined in KLM. This is how we deliver a safer and more sustainable energy future.”