Saudi Gazette report

RIYADH — Saudi Aramco President and CEO Amin Nasser emphasized on Monday that the importance of oil and gas cannot be underestimated, especially during times of conflict. "We are witnessing this now, as threats to energy security continue to cause global concern. This fact is clearly evident in the current global situation," he said while underlining the need to adopt a more realistic and pragmatic approach to the global energy transition.

Nasser made the remarks in his speech delivered on Monday via video conference at the Energy Asia 2025 Conference. Kuala Lumpur is hosting the three-day conference with the theme of "Delivering Asia's energy transition." The conference focuses on driving a fair and sustainable energy transition in Asia, addressing issues of energy security and climate action.

The Aramco chief emphasized that historical facts have demonstrated the importance of crude oil and gas in times of conflict. "History tells us that new energy sources do not replace traditional sources, but rather add to the energy mix," he said.

Nasser stated that the transition plan had been overestimated and under-implemented in large parts of the world, particularly in Asia. "Some believed the transition would be quick and straightforward, ending with the deplete of traditional energy sources. However, oil demand continues to exceed 100 million barrels per day, with no sign of a decline," he said.

The Aramco chief emphasized that the challenges posed by reality have revealed profound technical, economic, political, and social flaws in the popular narrative surrounding the energy transition. "On the one hand, this transition is extremely costly as the cost of achieving net-zero emissions could reach $200 trillion. On the other hand, reality proves that renewable energy sources, despite their importance and growth, have not reached a sufficient level of reliability to bear the existing burdens and risks," he noted.

As a result, Nasser emphasized, achieving energy security and affordable access are essential requirements, along with sustainability, as central goals of the transformation process. "Realism and pragmatism are beginning to replace idealism. This is a good thing, especially for Asia," he said.

He noted that Asia, the world's largest energy-consuming region, accounts for nearly half of global demand. "Without attention to Asia's needs and resources, the transition will not have a real impact, as we recognize the Asian continent's need for diverse energy sources that no single source can meet," he said.

The Aramco chief pointed out that wind, solar, and electric vehicles do not meet current or future demand needs. He emphasized that crude oil and gas will remain a key part of the energy mix. "The long-term goal is not to abandon traditional energy, but rather to improve it, while expanding at a realistic pace into new solutions. Each country must have a flexible, tailored energy strategy to implement it," he said.

Nasser stressed that countries must cooperate more than ever in this respect. "Governments, the energy sector, and innovators need to extend cooperation each according to their role in the field of new and traditional energy sources," he added.