Oil and gas will rule

Amid the rising popularity for electric vehicles, oil executives are, however, confident that the need for petroleum isn’t going away any time soon. They have reason to believe that oil and gas will continue to play a major role in a world where all energy sources will be required for the foreseeable future.

new york — Saudi Arabia’s oil company isn’t afraid of electric vehicles. As it prepares to sell a stake in the company to investors, the CEO reassured a Houston audience that the need for petroleum isn’t going away any time soon.

“I am not losing any sleep over ‘peak oil demand’ or ‘stranded resources,”’ Saudi Aramco chief executive officer Amin Nasser said at the CERAWeek by IHS Markit conference on Tuesday. “We must push back on the idea that the world can do without proven and reliable sources” of energy, he told the gathering. “Oil and gas will continue to play a major role in a world where all energy sources will be required for the foreseeable future.” The government plans this year to sell about 5 per cent of the company in what could be a record public offering. Nasser largely avoided talking about the initial public offering, saying only it would happen “where and when” the Saudi government decides. Unlike in prior speeches, where he’s repeatedly said the initial public offeringwould happen by the end of 2018, Nasser gave no time frame.

Nasser called on the industry to expand exploration, push to offset natural declines in producing fields and spend more than $20 trillion dollars in the next 25 years to meet rising demand. Battery electric vehicles will grow and have a welcome role to play in global mobility,” Nasser said. “But given the competition and complexity of the transition, their impact on the 20 per cent oil demand should not be exaggerated.”

He also pointed to the increased demand for oil outside of transportation, which makes up 20 per cent of consumption, including its use in petrochemicals and air transport.

I am not losing any sleep over ‘peak oil demand’ or ‘stranded resources’ Amin Nasser, Chief executive officer, Saudi Aramco