The need for additional investment in the global oil industry is more acute than any potential threat from technologies such as electric vehicles and renewables, president and CEO of Saudi Aramco Amin Nasser told the Future Investment Initiative conference in Riyadh on Tuesday.
“Hydrocarbons also need to grow to meet the future demand,” Nasser said, adding that over the past three years there has been an additional demand if almost 5 million barrels per day (bpd) as part of natural decline.
With oil industry requiring a cycle of five to seven years, Nasser warned the slowdown in investments will have an impact on global energy security of the future.
“Let’s not forget the drop in price between 2014 and 2015 going from $100 to $40 happened because additional (of) 2 million barrels supply,” he said.
Nasser said he sees oil remaining viable despite the pressures from electric vehicles as even the most bullish forecast put electric cars at around 500 million by 2040, when the total fleet globally is estimated to be two billion.
“So there will still be almost 1.5 billion (vehicles) using conventional engine,” he said.
Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com
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