In a world where green energy is becoming very popular, an oil tycoon makes a provocative statement, reminding everyone of the enduring value of oil and gas. “We should abandon the fantasy of phasing out oil and gas and instead invest in them adequately, reflecting realistic demand assumptions,” Saudi Aramco CEO Amin Nasser said.
He has shattered illusions about an easy transition to renewable energy. He said that alternative energy sources were unable to displace hydrocarbons at scale, despite the world investing more than $9.5 trillion over the past two decades. What is more, wind and solar still provide only 4% of global energy needs.
Nasser explains that the world is not ready to give up oil, as demand for it has grown by an impressive 100 million barrels a day since the beginning of the 21st century.
“Developing nations in the global south, meanwhile, will drive oil and gas demand as prosperity rises in those nations, which represent more than 85% of the world’s population,” the CEO said.
Although oil prices are already very high, Morgan Stanley analysts predict a further rise to $90 per barrel by the third quarter of 2024. They expect an oil shortage.
