Amin Nasser, Managing Director of the Saudi Arabian Oil Company, Saudi Aramco, at the 24th World Energy Congress in Abu Dhabi
DUBAI (Archyde.com) – The head of Saudi oil giant Aramco said on Tuesday that European plans to cap energy bills for consumers and tax companies in the sector are not viable solutions to the global energy crisis, largely linked to underinvestment in hydrocarbons.
“Freezing or capping energy bills can help consumers in the short term, but it doesn’t address the real causes and isn’t a long-term solution,” chief executive Amin Nasser said during the talk. a forum in Switzerland.
“And taxing companies when you want them to increase production is clearly not helpful.”
The EU presented measures last week aimed at capping the revenues of low-cost electricity producers and forcing companies in the fossil fuel sector to donate part of their profits.
According to Amin Nasser, the continued underinvestment in hydrocarbons, while alternatives are not yet readily available, is at the root of the problem.
“The conflict in Ukraine has certainly intensified the effects of the energy crisis, but it is not the root cause,” he said.
“Unfortunately, even if the conflict ended today as we all wish, the crisis would not end,” he added.
Aramco has invested to boost the kingdom’s oil capacity to 13 million barrels per day (bpd) by 2027, but Amin Nasser warned that overall investment in hydrocarbons was still insufficient.
“When the global economy recovers, we can expect demand to rebound further, which will eliminate the small oil production capacity available…that’s why I’m seriously worried.”
According to Amin Nasser, the energy crisis does not mean that climate objectives have to change, but that the world needs a more viable energy transition plan.
(Reporting by Maha El Dahan and Nadine Awadalla, French version by Augustin Turpin, edited by Kate Entringer)