At the World Petroleum Congress in Calgary, top executives from Exxon Mobil and Saudi Aramco expressed their support for the global transition to cleaner energy sources. However, they also underscored the lasting importance of oil in meeting current and future energy demands.
Exxon CEO Darren Woods and Saudi Aramco CEO Amin Nasser expressed skepticism regarding predictions by the head of the International Energy Agency that fossil fuel demand would peak by 2030. Both executives emphasized the need for continued investment in traditional oil and gas, alongside efforts to combat climate change.
Woods cautioned against a hasty reduction in oil usage, as global energy demand continues to rise. He stressed the importance of sustained investment in the industry to avoid supply shortages and inflated prices. Nasser echoed these sentiments and predicted an increase in oil usage, reaching up to 110 million barrels per day by 2030.
Both executives emphasized the need for continued exploration and investment in new production sources to meet growing demand. They argued against reducing oil output, as some environmental advocates suggest, and highlighted the potential risk of reverting to coal and other cheap energy sources without proper investment.
Furthermore, Woods stressed the importance of clear government policies to drive emission reductions. While initiatives like the U.S. Inflation Reduction Act are encouraging investment in cleaner energy transition supply chains, he stated that additional efforts are necessary. Woods also mentioned the importance of creating a market for carbon reduction rather than relying on perpetual government subsidies.
The energy sector’s stance on climate change has evolved, with a consensus emerging that acknowledges the need for emission reductions while recognizing the ongoing importance of oil in meeting energy demands. Companies in the industry also believe that they can contribute to pollution reduction through engineering solutions like carbon capture and storage.
Overall, while supporting the transition to cleaner energy sources, Exxon Mobil and Saudi Aramco executives maintain that oil will remain a vital component of the energy sector for the foreseeable future.
Sources:
– Reuters