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Aramco CEO Calls for Rethinking Energy Transition Plans

Amin Nasser, CEO of Saudi Aramco. AFP file photo
Amin Nasser, CEO of Saudi Aramco. AFP file photo
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Aramco CEO Calls for Rethinking Energy Transition Plans

Amin Nasser, CEO of Saudi Aramco. AFP file photo
Amin Nasser, CEO of Saudi Aramco. AFP file photo

CEO of Saudi Aramco Amin Nasser has urged policymakers and energy executives to reassess energy transition strategies, emphasizing the need to shift focus away from unsuccessful elements.

Speaking at the CERAWeek conference in Houston on Monday, Nasser stressed the importance of continued investment in fossil fuels to meet global demand.

His remarks come as the administration of President Donald Trump pushes for maximizing oil and gas production, marking a stark contrast to the policies of former President Joe Biden, who had enacted legislation accelerating the shift away from fossil fuels in the US.

Meanwhile, European policymakers have slowed the rollout of clean energy initiatives and delayed climate targets amid rising energy costs following the 2022 Russia-Ukraine war. Major European oil companies have also scaled back plans for green technologies due to financial unviability.

“We can all feel the winds of history in our industry’s sails once again,” Nasser told executives from leading global energy firms, as reported by Reuters. “It is time to stop reinforcing failure,” he added, citing green hydrogen as an example of an energy transition focus that remains commercially unviable due to high costs.

Nasser argued that while new energy sources can complement fossil fuels, they cannot fully replace them. “The current strategy of prematurely shifting to immature alternatives has been highly disruptive. New energy sources cannot even meet the growth in demand,” he said.

To ensure adequate energy investments, Nasser called for deregulation and greater financial incentives for institutions to provide “unbiased funding” across all energy sources.

Aramco, the world’s largest oil company, invested over $50 billion last year in both conventional and renewable energy projects. The company aims to develop up to 12 gigawatts of solar and wind power by 2030.

In his speech at last year’s CERAWeek, Nasser similarly urged the industry to “abandon the illusion of phasing out fossil fuels,” reinforcing his stance that a balanced and pragmatic approach to energy transition is necessary for global stability.

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Dollar Rises ahead of Fed; Turkish Lira Drop Reins in G10 Currencies

Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo
Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo
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Dollar Rises ahead of Fed; Turkish Lira Drop Reins in G10 Currencies

Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo
Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo

The dollar rallied on Wednesday ahead of the Federal Reserve's decision on interest rates, but retreated from the day's highs after markets stabilized from an early shock caused by the detention

of Turkish President Tayyip Erdogan's main rival.

Traders are also digesting the Bank of Japan's earlier decision to hold interest rates steady, while the Fed's policy decision later will be crucial for investors eager to know what the central bank makes of Trump's policies and their impact on the US economy, and how that affects the rate outlook.

Fed policymakers are widely expected to keep rates on hold, and will also release new economic projections at the conclusion of the meeting later in the day, Reuters reported.

Feeding into an earlier rally in the dollar was news out of Turkey which saw the lira briefly tumble by the most in a day on record, rippling through major currencies as investors shifted into safe-haven assets.

By 1226 GMT, the euro was down 0.3% versus the dollar to $1.091, having fallen as much as 0.6% earlier. Even so, it remains near a five-month high of $1.0955 scaled in the previous session.

"The news from Turkey is having an impact on G10 currency markets and risk appetite in general," said Jane Foley, head of FX strategy at Rabobank.

"But I would think some of the initial impact of what's happened will begin to filter out from some of the euro trade once the market has become a bit more accustomed to it."

The yen weakened against the dollar, which rose 0.3% to 149.805 in volatile trade as investors mulled the BOJ decision to hold rates steady and comments from Governor Kazuo Ueda .

The widely expected BOJ decision underscored policymakers' preference to spend more time gauging how mounting global economic risks from higher US tariffs could affect Japan's fragile recovery.

"The decision to leave monetary policy unchanged itself is not a surprise, so its impact on exchange rates is limited. However, the earlier-than-usual timing of the announcement seems to have led financial markets to initially interpret that the BOJ (did not consider) bringing forward a rate hike," said Hirofumi Suzuki, chief FX strategist at SMBC.

Adding to nervousness among investors, Israeli airstrikes pounded Gaza overnight, while US President Donald Trump and Russian President Vladimir Putin failed to reach an agreement on a Ukraine ceasefire.

The more risk-sensitive currencies edged lower, with sterling down 0.2% at $1.29795, not far from the previous session's four-month high of $1.3010, while the Australian and New Zealand dollars fell 0.4% and 0.5%, respectively.

Against a basket of currencies, the dollar ticked up 0.2% to 103.55, coming off a five-month low of 103.19 on Tuesday.

The dollar has fallen nearly 4% for the month, pressured by Trump's erratic approach to tariffs and as fears mount of a recession in the world's largest economy.

Traders are currently pricing in nearly 60 basis points of Fed rate cuts by the year end.

"The March FOMC meeting will likely be all about policy uncertainty. The Fed will almost certainly stay on hold, emphasising patience over panic," said analysts at Bank of America Securities.

"The (Summary of Economic Projections) forecasts and distribution of risks are both likely to reflect stagflation: weaker growth and higher inflation."