The chief executive of the world's largest oil company says he is not losing sleep over the threat from renewable energy and potential electrification of the automotive industry.
Speaking at CERAWeek by IHS Markit, Saudi Aramco's CEO Amin Nasser said the company is confident that market fundamentals are positive and the demand for oil remains strong globally. During and after his presentation, Nasser largely deflected questions about the company's pending IPO, which is anticipated to be the largest of all time, and instead focused on the future for oil and gas.
"I am not unduly concerned about recent volatility," he said. "I am not losing any sleep over peak oil demand or stranded resources."
The idea that renewables and electric cars are ready to take over the majority of global oil use today "threatens the future of energy security," according to Nasser. "Many wrongly believe it is a matter of electric engines simply and easily replacing the internal combustion engine," he said. "The mix for the future is far from decided and competition is heavy."
Even with established energy sources such as oil and gas, the price tag to keep up with growing global demand will be significant: $20 trillion over the next 25 years. "This is why you must push back against the idea that the world can live without reliable energy sources," Nasser said.
Given the large investments needed in keeping oil and gas flowing, Aramco is looking for upstream expansion opportunities outside Saudi Arabia, including potential investments in U.S. shale plays. "We are trying to capture growth areas in different parts of the world, and the U.S. is part of it," he said.
As for the potential Aramco IPO, Nasser said it was "progressing very well," and "the questions are when and where [the company will be listed]." Saudi Arabia is looking to sell up to 5% of Aramco, which appears likely to raise tens of billions of dollars depending on the valuation.
