Saudi Aramco Chief Executive Amin Nasser said Monday that the energy transition is failing and policymakers should abandon the “fantasy” of phasing out oil and gas as demand for fossil fuels continues to grow in the coming years, CNBC reported, as quoted from News .ro.

“In the real world, the current transition strategy is clearly failing on most fronts because it runs counter to five hard realities,” Nasser said in an interview at S&P Global’s CERAWeek conference in Houston, Texas.

He noted that “there is an urgent need to reboot the transition strategy and my proposal is this: we should abandon the fantasy of phasing out oil and gas and instead invest in them properly reflecting realistic assumptions about demand,” the CEO said. to the applause of the conference audience.

Last year, the Paris-based International Energy Agency estimated that demand for oil, gas and coal would peak in 2030.

Nasser said demand is unlikely to peak anytime soon, let alone in a year. He suggested that the IEA is focusing on demand in the US and Europe, but should also focus on developing countries.

In his opinion, alternative energy sources have not been able to replace hydrocarbons on a large scale, despite the fact that the world has invested more than 9.5 trillion dollars in the last two decades.

Wind and solar energy now provide less than 4 percent of the world’s energy, he said, while the overall penetration of electric vehicles is less than 3 percent. Meanwhile, the share of hydrocarbons in the world’s energy balance has barely fallen in the 21st century, from 83 percent to 80 percent, Nasser said.

Global demand rose by 100 million barrels of oil equivalent per day over the same period and will reach an all-time high this year. Gas has increased by 70% since the beginning of the century. said the CEO of Aramco.

The shift from coal to gas is responsible for most of the reduction in carbon emissions, he said.

“This is not the picture of the future that some paint. Even they are beginning to realize the importance of oil and gas security,” Nasser said.

Meanwhile, developing countries in the global south will drive demand for oil and gas as prosperity rises in these countries, which account for more than 85 percent of the world’s population, the CEO said. According to him, these countries receive less than 5% of investments aimed at renewable energy sources.

Nasser said the world needs to focus more on reducing oil and gas emissions, in addition to renewable energy sources. Efficiency gains alone have reduced global energy demand by nearly 90 million barrels of oil equivalent per day.

“We must introduce new energy sources and technologies when they are really ready, economically competitive and with proper infrastructure,” Nasser emphasized.