Oil giant CEO says fossil fuel shift unrealistic for developing nations

Conventional fossil-based energy cannot be replaced by cleaner sources: Aramco boss

- Cheryl Tan Correspondent and Shabana Begum

The chief executive of the world's largest oil company, Aramco, on Oct 21 said the transition away from fossil fuels for developing countries was "unrealistic" and "too expensive", adding that such fuels will continue to play a role for these growing economies.

Giving a keynote address at an energy conference in Singapore where decarbonisation was a key focus, the president and chief executive of Saudi Arabia's state-owned company, Mr Amin Nasser, told several hundred attendees that conventional fossil-based energy cannot be replaced by cleaner sources.

Instead, it is about ensuring that new energy sources coming online are met with alternatives such as renewables, he said.

"So rather than an energy transition, we are really talking about energy addition, where just the growth is mostly met by alternatives, instead of replacing conventional energy in any meaningful way.

"Yet, the current transition plan continues to ignore this reality," he added.

The burning of fossil fuels causes the release of planet-warming emissions that drive climate change.

Confronted with increasingly severe extreme weather events and changing weather patterns, countries are growing more aware of the urgency in reducing fossil fuels to tackle climate change.

But in his keynote speech, Mr Nasser said the world needs to be "pragmatic" and avoid a "one size fits all" approach, and allow countries to decarbonise at a pace that they deem suitable.

Investments should go into improving the state of conventional oil and gas technologies that developing nations need and can afford, while prioritising the reduction of greenhouse gas emissions from those energy sources, he added.

"We should not ask to stop using oil and gas while the other alternatives are not ready... and the cost (of renewables) is high compared with fossil fuels," said Mr Nasser.