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.
