Aramco keen to explore new fuels to support sustainable growth, chief executive says
Saudi Aramco, the world’s biggest oil-exporting company, is exploring opportunities to develop and increase the use of new fuels to support cleaner economic growth, its chief executive said.
Amin Nasser said in his keynote address at the China Development Forum that 2020 had been a tough year for everyone around the world.
“A great deal of uncertainty still lies ahead. It has also reminded the world of an unavoidable truth: that reliable, affordable and sustainable energy systems are mission-critical to delivering economic prosperity,” he said.
There are also “exciting” opportunities to collaborate on the development and use of “future fuels such as hydrogen and other chemicals-type clean fuels”, he said at the forum, which was held online due to Covid-19.
However, while new energy technology slowly raises its contribution to an evolving energy mix, existing energy sources are expected continue to play a significant role in the coming decades, Mr Nasser said.
“Improving their carbon footprint is now a key worldwide economic and environmental imperative,” he said.
Aramco’s interest in new and cleaner fuels comes after Abu Dhabi oil company Adnoc said it was exploring the potential of new fuels as it moves to reduce its carbon intensity over the next decade.
“We all have a role to play and we as an industry can do more on climate change,” Dr Sultan Al Jaber, Minister for Industry and Advanced Technology and Adnoc group chief executive, said at the Abu Dhabi International Petroleum Exhibition and Conference on Monday.
Adnoc is already one of the least carbon-intensive produc
ers in the world and plans to reduce its greenhouse gas emissions by about 25 per cent over the next 10 years, he said.
The coronavirus pandemic has halted global trade, disrupted the travel and tourism sector and tipped the global economy into its worst recession since the 1930s.
The International Monetary Fund expects global gross domestic product to shrink by 4.4 per cent this year, with a moderate recovery expected next year. The International Energy Agency forecast a 5 per cent drop in global energy demand this year – seven times larger than the decline after the 2008 financial crisis – to 91.7 million barrels per day.
Oil markets had been trading at five-month lows but picked up towards the end of last week.
Prices increased on Monday after Pfizer’s announcement of a potential vaccine breakthrough and Joe Biden’s victory in the US presidential elections.
Brent crude prices rose above $45 a barrel for the first time in two months yesterday.
Mr Nasser urged the rest of the world to take a leaf out of China’s book to create the economic momentum needed for a sustainable oil market recovery. China was the first country to recover from the pandemic.
Aramco is at an advanced stage of developing futuristic technology to convert crude oil directly into petrochemicals. Such technology includes a flagship catalytic crude- to- chemicals process that is being piloted with Tsinghua University in Beijing, he said.
He said the company was developing new, cutting-edge and non- metallic materials that emit far less carbon during their production and can be used in sectors such as construction, housing and renewables to help China’s growth momentum.
The Aramco boss said existing energy sources will play a key role in coming decades even as the energy mix evolves