Amin Nasser, President and CEO of Aramco, at the "Energy Information Forum" held in London, emphasized the need for closer cooperation between governments, energy suppliers, and consumers to strengthen global energy resilience and improve the ability to withstand geopolitical disruptions.
The Importance of Oil and Gas in Global Energy Security
Nasser highlighted the ongoing importance of oil and gas in ensuring global energy security, economic stability, and geopolitical resilience. He warned that disruptions in regional energy flows could create long-term pressure on markets and that significant time may be required to resolve these issues.
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Nasser stated: "As long as the Strait of Hormuz is not fully opened and trust in the markets is not restored, the harsh reality is that pressure on crude oil will increase on both sides. Even then, rebuilding inventories while responding to demand may take up to two years."
Challenges of Energy Transition and Resources
He also emphasized that oil and gas are deeply embedded in the global economy and that energy transition faces challenges related to resources and supply chains. Nasser added: "Oil and gas are not the only tradable commodities – they are the lifeblood of modern civilization… with shortages in aluminum, sulfur, helium, and petrochemicals, renewable energies and electric vehicles are also not exempt from this rule… half of the world's proven oil reserves are located in the Middle East, along with most of its additional production capacity… the strategic importance of our region is increasing as other resources mature and new resources are likely to be harder and less competitive to find."
He referred to Aramco's diverse resilience measures, which include strategic storage, additional production capacity, multiple grades of crude oil, domestic gas storage, and a fleet of tankers through Bahri. The company's strong financial position and local supply chain also contribute to its ability to respond to disruptions.
Nasser clarified: "At Aramco, resilience is like a large and complex puzzle, not a single asset or capability. Our global strategic storage has been vital. Our additional capacity, multiple grades of crude oil, domestic gas storage, tanker fleet through Bahri, and one of the strongest financial positions in the industry add more layers. Additionally, our local supply chain, which has provided over 90% of the materials used in asset restoration, plays a key role… we are exploring additional routes for crude oil exports and also seeking more storage abroad to cover short-term disruptions."
The Energy Information Forum brings together senior energy executives, government officials, investors, and innovators to discuss global energy challenges and opportunities.
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