Dubai: Oil and Gas Why Aramco CEO Amin Nasser Calls for a Transformation of the Oil and Gas Sector
No more ‘business as usual’: The CEO of one of the world’s leading oil companies says the upstream sector needs to transform itself to stay on top of the global energy industry. And the biggest challenge might be yet to come…
Dubai – The global upstream oil and gas industry needs to move away from a “business as usual” approach and capitalize on opportunities to transform itself: Speaking at the annual SPE and ATCE conference in Dubai, Amin H. Nasser, President and Chief Executive Officer of Saudi–Arabia’s oil behemoth Saudi Aramco, called for drastic measures. “The oil and gas industry has a long history of navigating challenges – but today’s pressures are unprecedented. In the current low-price, volatile environment, the “business as usual” practices can’t stand up to increasingly complex financial, technology and talent issues”, Nasser told the delegates. “Cutting edge technologies and innovation have helped to make energy more abundant and sustainable as well as provide the resilience that’s required during challenging times.”
Nasser said the energy landscape is currently witnessing world demand on a steady course which augured well for the industry. “While its pace has been tempered by energy-efficiency gains, demand will be impacted by global population growth expected to pass 9½ billion by 2050, and rising living standards in developing economies,” said Nasser.
Oil Fields Age and New Developments are Scarce
“Presently, oil and gas fields are becoming increasingly mature and complex to operate. Environmental pressures are intensifying, amid misperceptions about our support of a cleaner environment. In light of this backdrop, if we look at the industry’s present business and operating model and ask if it’s up to the tasks ahead, I’d say the answer is no,” he said.
The call on energy will be met by oil and gas – and oil’s central position, especially in heavy transport and petrochemicals feedstock, will remain solid and central for years to come.
Oil Production Gets More and More Expensive
However, Nasser cautioned that the oil and gas resources currently available, as well as new discoveries, are more challenging and more expensive to develop.
He said an integrated strategy can help lift the upstream industry, enabling it to adapt to the energy transitions; environmental, policy and regulatory trends. Nasser said the biggest challenge was the need for resilience to industry downturns. Industry players must possess strong financial capacity to ride through challenging times and to maintain long-term investments to develop new capacity while continuing to innovate for better efficiencies.