Saudi Aramco President & CEO Amin Nasser said that “expensive” alternatives have been unable to displace hydrocarbons at scale despite the world investing more than $9.5 trillion on energy transition over the past two decades.

“We should abandon the fantasy of phasing out oil and gas and instead invest in them adequately, reflecting realistic demand assumptions,” he said at the CERAWeek event in Houston, the US.

Nasser pointed out that the combined wind and solar supply is below 4% of world energy, while the total penetration of electric vehicles (EVs) is less than 3%.

“By contrast, the share of hydrocarbons in the global energy mix has barely fallen in the 21st century, from 83% to 80%,” he stated, adding global oil demand is expected to reach an all-time high in the second half of 2024.

Moreover, many alternatives in play are simply unaffordable for the majority of people around the world.

“For example, despite its significant long-term potential, hydrogen still costs in the range of $200 to $400 per barrel of oil equivalent, while oil and gas remain much cheaper,” Nasser said.

EVs, without subsidies, are up to 50% more expensive than an average internal combustion engine car, he stated.

(Writing by P Deol; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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