Saudi Aramco CEO: Renewable Energy and Petroleum Have Bright Future
Khalid Al-Falih, Saudi Aramco CEO, sees room for alternative energy and the Saudi national oil company. (image: geobahrain.org)
For a man at the top of the global oil industry, the president and CEO of Saudi Aramco, Khalid Al-Falih is accepting of the rise of renewable energy, reports Aramco ExPats. “Ultimately,” he said in a speech in Korea, alternative sources of energy “will displace petroleum.” He’s not too worried, though, because “there will be attractive uses for our hydrocarbons other than burning.”
Wait, isn’t he supposed to say that renewable energy can’t replace oil? Well, Al-Falih thinks Aramco can have it both ways. Renewable energy will “ultimately” take oil’s place—“over time.” But for now, petroleum is still king, and “an essential commodity to virtually every aspect of modern life.” He’s previously conceded that believers in peak oil have a case, but that oil will last longer than they think.
He makes a good case, and leans on the IEA’s assessment that oil will be the biggest component of the global energy mix in 2030, even as global energy demand rises by 40 percent. When Al-Falih says that “global economic development” and “social advancement” depend on “making the best use of proven sources of energy” (read: oil and gas), he’s speaking in his own self-interest—but he might also be right.
Even in the hazy future when renewables dominate the energy industry, Al-Falih has plans to make sure Aramco still fares well: Petro-Rabigh, Saudi Arabia’s first crude petrochemical refinery, will manufacture plastics, a material that will continue to see use even if alternative fuels power homes and fuel vehicles.
Oil Producers Urge Realism, not Rhetoric | HeatingOil.com says: says:
[...] to signal to us a long-term commitment.” Al Falih’s comments are rather more severe than those he made only a month ago, when he conceded that alternative fuels will ultimately displace crude and that, while sometimes [...]