According to Aramco's CEO, global sustainable development goals will not be achieved without taking into account the evolution of different economies, the affordability of alternative energies and the growing demand for electricity.
Speaking at the Future Investment Initiative in Riyadh, Amin Nasser said that although the rhetoric around climate change is there, greener supplies are not ready to meet market demands.
The CEO also took advantage of his speech to warn of the economic impact of abandoning fossil fuels before other energy sources are profitable.
"A single solution is not acceptable, we need a transition that takes into account the economic maturity of the different countries, and a multi-speed transition, otherwise we will not achieve what we aspire to by 2050", said Nasser.
Le PDG a souligné les pressions inflationnistes qui ont balayé le monde à la suite de la pandémie de COVID-19, en déclarant : « Les prix ont augmenté, le charbon a commencé à augmenter en termes de demande – le charbon est à son plus haut niveau aujourd’hui, 8,3 milliards de tonnes, donc nous j’ai ajouté beaucoup de charbon parce qu’il est plus abordable et que les autres alternatives ne sont pas prêtes.
He added: "Everyone's talking about hydrogen, but it's much more expensive than traditional energy sources. Blue hydrogen costs 200 dollars per barrel of oil equivalent, while green hydrogen costs 400 dollars per barrel. Today, when you go to customers, it will be very difficult for them to sign a sales contract.
Speaking alongside Nasser at a session entitled "The Energy Matrix", TotalEnergies CEO Patrick Pouyanne echoed this notion: "Yes, we have invested over the last 15 years in solar, wind and low-carbon energies, but it wasn't enough to offset the huge increase in demand. That's why this transition is complex.
"To make the (energy) transition, it's not a question of supply and demand. What's complex is changing the demand structure... if we change the supply, but our customers don't change their demand structure, it won't work", he added.
The Aramco CEO also highlighted the linear perspectives in which the climate change dialogues are taking place, noting that they are largely focused on the priorities of the North.
"Today, the energy transition does not really solve the priorities of the countries of the South, and we need to be clear about this.
"Eighty per cent of the energy we produce today goes to the South, not the North. By 2050, 90 per cent of the energy we produce will go to the South. If we don't take into account the needs and priorities of the South, we won't achieve our energy objectives", he declared, while calling on the discourse on energy transition to become more inclusive of different needs.
Nasser warned that when it comes to emissions, there are no barriers or borders. Even if emissions are reduced in the North, if they do not meet the affordable needs of people living in poverty in the South, the collective climate objectives will not be achieved.