RIYADH: As achieving net-zero greenhouse gas emissions high on the global agenda, the chief of the world’s biggest oil producer Saudi Aramco said the energy transition will happen only if affordability, security of supplies and sustainability are being ensured.
Talking about carbon capture and storage, Aramco President and CEO Amin H Nasser said the company is trying to build one of the world's biggest hub for carbon capture and storage. "But we need to scale carbon capture and storage globally. Without scaling, you cannot achieve your net-zero target. Hopefully, I am confident that with technology and with innovation, we will be able to do that.”
The energy giant reported a record net profit growth of 46.46 percent in 2022 to SR604.01 billion ($161 billion), driven by higher oil prices, increased volumes sold and improved margins for refined products.
During a press conference after announcing the financial results, Nasser told Arab News that material transition supported by technological advancements and innovation is pretty much necessary to achieve energy transition goals within the stipulated target time.
“We are heavily investing in technology. We have 12 global centers, most of those work on sustainability. Material transition is critical for Aramco and others, because, without material transition, it will be difficult to achieve the aspirations of climate change,” he told Arab News.
He added: “Aramco is heavily involved in different sectors to reduce the costs. Green hydrogen and blue hydrogen are expensive for the market. So, we are looking at how can we reduce the cost of time, and how can technology help to reduce the cost and make the transition affordable.”
Replying to a query on market demand, Nasser said that the global oil market is recovering, as China is opening up, and the market is expected to remain tightly balanced in 2023.
“The profit for 2023 is all dependent on the market. And the production target is very difficult to predict. We receive production targets every month. We are cautiously optimistic about the market,” Nasser told Arab News, adding that they are seeing more demand from China.
He added: “We are recovering. If you consider China opening up, a pick-up in jet fuels, and very limited spare capacity, we are talking about 2 million barrels. So, I think, we are optimistic in the short to mid-term, and the market will remain tightly balanced.”
He also revealed that Aramco is looking at major expansions including in the gas sector, adding that the company is looking for investment opportunities globally in Liquified Petroleum Gas.
