CEO and President of Saudi Aramco Amin Nasser urged proactive measures to avoid an escalating energy crisis and prevent a growing divide in energy transitions between the developed North and the developing South.
Speaking at the 24th World Petroleum Congress (WPC) in Calgary, Canada, Nasser emphasized the world deserves a more realistic, more robust energy transition plan, which should reasonably incorporate the continued deployment of new energy while recognizing the continued need for conventional power.
Nasser stressed that energy transition strategies should consider potential consequences if energy security and affordability are overlooked. He welcomed global leaders' acknowledgment that realistic solutions are necessary for the transition phase.
He warned that phasing out conventional energy prematurely could put energy security and affordability priorities at risk.
Addressing the risk of a global energy gap, Nasser noted, "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 inevitable."
The official discussed the risks of prematurely phasing out traditional energy.
"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," he said.
Nasser warned that it increased the risk of acute supply-demand imbalances in conventional energy and, therefore, an even more severe energy crisis where countries and people, not just assets, are stranded.
He announced: "We are talking about the complete transformation of a $100 trillion global economy. One that is likely to roughly double in size by 2050, with nearly an additional two billion energy consumers. In short, the re-invention of our energy-based way of life in less than 30 years."
Nasser received the World Petroleum Congress Dewhurst Award, given to the most influential global oil, gas, and energy leaders. Nasser is the twelfth award recipient in the Council's 90-year history.