Amin Nasser, the chief executive of Saudi Aramco, has emphasized the need for a reevaluation of energy transition plans for developing countries, highlighting a projected surge in oil demand in the Global South. Speaking at the Singapore International Energy Week, Nasser pointed out that the growth of developing economies is leading to increased living standards and, consequently, higher oil demand.
Nasser noted that this demand is expected to persist for an extended period, even after growth slows. He stated, “If so, more than 100 million barrels per day would realistically still be required by 2050.” This figure starkly contrasts with predictions that oil consumption could plummet to just 25 million barrels per day by that time, a scenario Nasser described as potentially devastating for energy security and affordability.
The Aramco executive urged developing countries to determine their own optimal energy mix and to set a transition pace that suits their specific needs. “Our main focus should be on the levers available now,” he said.
Nasser’s remarks come alongside a recent report from BloombergNEF, which indicated that Asia Pacific must triple its current spending on energy transition efforts to $2.3 trillion by 2030 to meet the targets set by the Paris Agreement. He added that investments in Asia and other developing regions could require as much as $6 trillion annually to facilitate the transition. Notably, Nasser highlighted that Asia currently depends on hydrocarbons for 84% of its energy needs, with new energy sources primarily meeting additional demand rather than replacing traditional fuels.
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