The energy crisis sparked by Russia’s invasion of Ukraine has indicated the need to overhaul green energy transition plans and maintain investment in oil and gas production, said Amin Nasser, CEO of Saudi Aramco. He pointed out that the world is running with less than 2% of spare oil capacity, leading to further imbalances.

“Before Covid, the aviation industry was consuming 2.5 million bpd more than today. If the aviation industry picks up speed, you will have a major problem,” Nasser said at the World Economic Forum in Davos.

Once Covid-19 restrictions in China ease-out, the global oil demand would pick up, leading to further concerns. He said the company’s target to scale up oil production capacity to 13 million barrels per day from the existing 12 million bpd is unlikely to be fast-tracked and will be achieved by 2027.

He said that rather than working on an energy transition strategy that would help the world by 2050, the world was being pushed toward more coal use because energy security, affordability, and availability were not appropriately addressed. 

In the past, Nasser has stated how the world’s energy transition strategy was “flawed” and without an all-encompassing view of the scale and complexity of the challenges. 

Raising the clarion call for companies to invest in oil and gas production until renewable power can fully replace hydrocarbons, Nasser said, “Without investment, you will not have energy security, and you will not have affordability. With more supply, you will have stability in prices.” 

Nasser highlighted the crucial need for new and existing energy sources, including oil and gas, which will need to operate in parallel for a long time.