Saudi Aramco CEO Amin H. Nasser delivered a keynote address to the world's leading energy ministers, officials, and executives, stating that oil and gas will remain at the heart of the global energy mix over the next several decades while the world transitions to alternatives. Speaking at the 23rd World Energy Congress in Istanbul, with the theme "Embracing New Frontiers," Nasser stated that the energy industry is presently facing challenges, not only because of low oil prices, but because of slowing global investments in oil and gas projects which are tightening the supply-demand balance. He cautioned that deferred investments estimated at $1 trillion in oil and gas projects may lead to a shortfall in supply. Throughout its 80-year long history, Saudi Aramco had experienced several downturn cycles but always maintained a long-term view of energy investment. He said: "We will continue to invest in our core oil and gas projects, and in downstream and chemicals. We are continuing to maintain our spare production capacity to help respond to unforeseen events, and help minimize their potential impact on the global economy. By doing so, we are playing our part in enhancing global energy security." He also noted the oil market is beginning to recover. In the next ‘transitional phase,' the world will move towards alternatives. However, according to IEA estimates, some 75% of global primary energy demand (about 360 million barrels per day of oil equivalent) in 2040 will still be met by fossil fuels. Therefore, the pivotal role of oil and gas in the global energy mix will continue for decades to come. --More
