Energy conference highlights divide between sustainability goals and economic realities.
During the opening of the Singapore International Energy Week (SIEW) on October 21, 2024, Aramco’s CEO Amin Nasser emphasized the continued need for fossil fuels in developing nations, citing the impracticality and high costs of a full transition to renewable energy. Addressing several hundred attendees at the Sands Expo and Convention Centre, Mr. Nasser underscored the importance of a pragmatic approach to energy transition.
Key Highlights of Mr. Nasser’s Speech
Fossil Fuels as an Ongoing Necessity
Mr. Nasser argued that renewable energy alone cannot replace conventional fossil fuels, especially for developing nations. Instead, he advocated for “energy addition” – a combination of new energy sources with improved fossil fuel technologies.
Challenges of Energy Transition
He described the global shift to renewables as “way off pace,” noting that wind and solar account for just 4% of global energy, with electric vehicles similarly representing a fraction of total road traffic.
Economic Burden on Developing Nations
Highlighting the unequal financial strain, Mr. Nasser said the transition could cost up to $200 trillion globally by 2050. He warned that forcing a rapid energy shift on developing countries could hinder their economic growth.
Criticism of Renewable Energy Costs
Mr. Nasser attributed rising electricity costs in Europe to renewable integration challenges, including intermittent supply and expensive battery storage. He pointed to these issues as evidence of an impractical transition timeline.
A Call for Equitable Solutions
He urged policymakers to invest in cleaner fossil fuel technologies while allowing countries to progress at their own pace. This approach, he argued, would better align with the economic realities of the Global South.
Aramco’s Dominant Role at SIEW
Aramco’s influence at the event was prominent, with the company listed as a Diamond Sponsor. Their extensive exhibit highlighted ongoing efforts to balance fossil fuel reliance with sustainability goals.
Contrasting Views
Despite Mr. Nasser’s assertions, the Financial Times recently reported significant reductions in Europe’s energy prices due to rapid wind and solar advancements. Critics argue that renewable energy has already shown promise in addressing both economic and environmental concerns.
As the conference continues, the dialogue between economic development and climate urgency remains central, reflecting the complex path toward a sustainable global energy landscape.
