By:Oilandgasmiddleeast

Progress in the energy transition across Asia has been far slower, less equitable, and more complex than many anticipated. Saudi Aramco CEO Amin Nasser said urging a policy reset for developing countries.

As economies grow and living standards improve, the Global South is expected to see continued growth in oil demand for an extended period. While this demand may eventually level off, it will likely remain on a long plateau before declining, Nasser noted. According to reports, he emphasised that countries should be able to choose an energy mix that aligns with their climate goals at a pace and in a manner that suits their specific needs. “Our main focus should be on the levers available now,” Nasser said.

“More than 100 million barrels per day would realistically still be required by 2050,” he said in a speech.

These levers include encouraging investments in affordable oil and gas infrastructure for developing nations and prioritising the reduction of carbon emissions from conventional sources by enhancing energy efficiency and advancing carbon capture, utilisation, and storage (CCUS) technologies.

Despite trillions of dollars being funnelled into the global energy transition, Nasser pointed out that demand for oil and coal has reached record highs, delivering a “hammer blow” to transition efforts. Asia, which consumes more than half of the world’s energy, still depends on conventional resources for 84% of its energy needs. Rather than displacing conventional energy, alternative sources are primarily addressing new consumption growth, he explained.

Aramco’s Nasser also highlighted that the shift to electric vehicles (EVs) in Asia, Africa, and Latin America lags behind that in China, the U.S., and the European Union, as consumers face challenges related to affordability and infrastructure. Additionally, the rise of EVs has a limited impact on the remaining 75% of global oil demand, with sectors like heavy transportation and petrochemicals still reliant on oil and gas due to the lack of economically viable alternatives.

Nasser stressed that developing nations may need nearly $6 trillion annually to finance the energy transition and called for these countries to have a stronger voice in global climate policies.

Aramco’s views on oil demand in China

At the same event, Naser said that Saudi Aramco is “fairly bullish” on China’s oil demand, especially with the government’s stimulus package aimed at boosting economic growth, “We see increasing demand for jet fuel and naphtha, particularly for liquid-to-chemical projects,” Nasser noted.

He highlighted that much of this growth is driven by China’s expanding chemical needs, especially for sectors crucial to the energy transition, such as electric vehicles and solar panels. “China’s demand for chemicals is seeing significant growth, especially for the transition-related industries,” Nasser added.

Saudi Arabia, the second-largest oil exporter to China after Russia, also holds stakes in several Chinese refineries.