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Aramco President & CEO Amin H. Nasser has called for action to avert a more serious energy crisis and avoid a North-South transition divide. In a keynote speech today at the 24th World Petroleum Congress in Calgary, Canada, he highlighted the need for a more realistic and robust transition plan that is multi-source, multi-speed and multi-dimensional.
He also emphasized the potential consequences of ignoring energy security and affordability issues, while welcoming growing recognition among world leaders that transition planning required pragmatic and proportionate solutions that reflect different countries’ economic and energy situations.
On the risk of a global energy transition divide, Mr Nasser said: “While much of the Global North is focusing on environmental sustainability, the priority for many in the Global South is economic survival. Transition planning has not sufficiently recognized this clear need for distinctive solutions, and a widening divide is an inevitable result.”
On the danger of phasing out conventional energy prematurely, Mr Nasser said: “The current transition shortcomings are already causing mass confusion across industries that produce and/or rely on energy. Long-term planners and investors do not know which way to turn. It is increasing the risk of acute supply-demand imbalances in conventional energy, and therefore an even more serious energy crisis where countries and people, not just assets, are stranded.”
On the scale of the transition challenge, Mr Nasser said: “We are talking about the complete transformation of a $100 trillion global economy today. One that is likely to roughly double in size by 2050, with close to an additional two billion energy consumers. In short, the re-invention of our entire energy-based way of life in less than 30 years. Let us be inspired by that, but understand it means making history.”
The World Petroleum Congress continues until September 21 and the theme is “Energy Transition: The Path to Net Zero”. During this year’s event, the World Petroleum Council presented Mr Nasser with the Dewhurst Award, which recognizes leaders who have made an exceptional impact on the global oil, gas and energy industry. Mr Nasser is only the 12th recipient of the award in the nearly 90-year history of the World Petroleum Council.