Amin Nasser, the chief executive of Saudi Aramco, the world’s biggest oil producer, urged global leaders on Monday to continue investing in planet-warming fossil fuels in the years ahead, arguing that the assumption the world could transition to clean energy “overnight” was “deeply flawed.”
Nasser, during remarks at the World Petroleum Congress in Houston, Texas, claimed that transitioning to cleaner fuels too rapidly could prompt uncontrolled inflation and social unrest, and ultimately upend nations’ emissions targets to curb carbon pollution.
“I understand that publicly admitting that oil and gas will play an essential and significant role during the transition and beyond will be hard for some,” Nasser said during the conference, which has focused on low-carbon strategies and technology.
“But admitting this reality will be far easier than dealing with energy insecurity, rampant inflation and social unrest as the prices become intolerably high, and seeing net-zero commitments by countries start to unravel,” he continued.
Nasser’s remarks come amid mounting pressure on the oil and gas industry to limit exploration and production of fossil fuels and shift to renewable power development, as countries set new carbon emissions reduction targets to battle climate change.
The International Energy Agency in May warned that investments in new oil and gas projects must immediately stop in order for the world to achieve net-zero emissions by 2050 and avoid the worst consequences of climate change.
Keeping global temperatures from surpassing 1.5 degrees Celsius of warming will require the world to slash greenhouse gas emissions nearly in half within the next decade and reach net-zero emissions by 2050, according to the Intergovernmental Panel on Climate Change. The Earth has already warmed about 1.1 degrees Celsius above pre-industrial levels and is set to see a temperature rise of 2.4 degrees Celsius by 2100.
But other world energy leaders at the conference, including the chief executives of Exxon and Chevron, also argued that demand for oil and gas will remain high in upcoming years despite efforts to transition to a clean energy economy.
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“Oil and gas continue to play a central role in meeting the world’s energy needs, and we play an essential role in delivering them in a lower carbon way,” Chevron CEO Mike Wirth said at the conference. “Our products make the world run.”
Exxon on Monday unveiled plans to reach net-zero emissions from its operations in oil and gas fields in West Texas and New Mexico by 2030 as part of an effort to curb emissions across its business. During the conference, the company’s CEO Darren Woods stressed the continued need for fossil fuels amid the clean energy transition.
“The fact remains, under most credible scenarios, including net-zero pathways, oil and natural gas will continue to play a significant role in meeting society’s need,” Woods said.
President Joe Biden last month announced that the U.S., in coordination with China, India, Japan, South Korea and the United Kingdom, will tap the Strategic Petroleum Reserve and release 50 million barrels in an effort to calm this year′s rapid rise in fuel prices.
“While there may be pushback on my remarks today, I know that if we do not speak out as an industry, no one else will on our behalf,” Nasser said.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
