Top executives from Exxon Mobil Corp. and Saudi Aramco voiced their support for the global transition to cleaner energy sources while emphasizing the ongoing importance of oil in the energy sector for the foreseeable future. These statements were made at the World Petroleum Congress held in Calgary on Monday.
Exxon CEO Darren Woods and Saudi Aramco’s Amin Nasser expressed skepticism about recent predictions from the head of the International Energy Agency, which suggested that demand for fossil fuels would peak by 2030. Both leaders emphasized the need for continued investment in conventional oil and gas as part of a balanced approach to addressing climate change.
Woods cautioned against a hasty reduction in oil usage due to increasing global energy demand, stating that without sustained investment in the industry, supply shortages could lead to higher prices. He stressed the importance of clear government policies focused on emissions reductions and mentioned the role of market forces in driving carbon reduction efforts.
Nasser echoed Woods’ sentiments, predicting record oil usage of 103 million to 104 million barrels per day in the latter half of this year, with demand expected to rise to 110 million by 2030. He emphasized that this puts pressure on the industry to continue exploring new production sources rather than reducing output, as some environmental advocates suggest.
We need to invest,” Nasser said during the conference, “otherwise in the mid to long term, we will have another crisis and we will go backward in terms of using more and more coal and other cheap products available today.
The oil industry’s stance on climate change and carbon emissions has evolved, with a common approach emerging: acknowledging the reality of climate change and the need for emission reductions, while asserting that oil continues to be vital in meeting global energy demand. The sector also believes it can contribute significantly to reducing pollution through engineering solutions such as carbon capture and storage.