Saudi Aramco President and CEO Eng. Amin H. Nasser has called for a more pragmatic and sustainable approach to the global energy transition, urging policymakers to integrate both renewable and traditional energy sources rather than prioritizing one at the expense of the other. Speaking at the CERAWeek 2025 conference, Nasser highlighted the risks of current transition strategies that impose restrictive regulations on fossil fuels without ensuring sufficient renewable capacity to meet growing energy demand.
Sustainability Through a Diversified Energy Mix
Nasser emphasized that a sustainable energy future requires a diversified approach that balances investment in renewables while maintaining stable traditional energy sources to ensure energy security. He warned that policies designed to phase out fossil fuels too quickly could lead to significant economic challenges and supply shortages, potentially requiring an additional $6-$8 trillion annually to bridge the gap.
“The biggest misconception about the energy transition is the assumption that traditional energy can be replaced overnight,” Nasser stated. “In reality, fossil fuels still supply over 80 percent of the energy in the United States, about 90 percent in China, and more than 70 percent in the European Union. A hasty transition without reliable alternatives is a recipe for instability.”
He also noted that rather than replacing fossil fuels outright, new energy technologies must complement existing sources to meet global energy needs efficiently.
Rapid Growth of Renewable Energy in the Middle East
The discussion on sustainability comes amid significant advancements in renewable energy adoption. According to the International Energy Agency’s (IEA) ‘Electricity 2025’ report, renewable energy generation in the Middle East is projected to grow at an annual rate of 14 percent between 2025 and 2027. The region’s renewable energy share is expected to rise from 5 percent to 7 percent during this period, reflecting increasing investment in solar and wind power.
Despite this growth, natural gas continues to be the primary energy source in the region. Gas-fired electricity generation grew by 2.9 percent in 2024 and is expected to expand by 5.3 percent annually from 2025 to 2027, as governments shift from oil-based power generation to cleaner-burning natural gas to reduce carbon emissions. The share of natural gas in the Middle East’s electricity mix is anticipated to rise from 68 percent to 73 percent.
Oil Demand Remains Strong Amid Energy Transition
While renewable energy adoption accelerates, global oil demand is also expected to rise. Nasser projected an increase of 1.3 million barrels per day (bpd) in 2025, bringing total demand to nearly 106 million bpd. He noted that while countries are expanding their renewable energy infrastructure, oil and gas remain essential to ensuring economic stability during the transition.
During a discussion at the World Economic Forum in Davos, Nasser addressed concerns about U.S. energy policies under President Donald Trump, which could lead to increased domestic hydrocarbon production. He reaffirmed that Saudi Aramco operates within the production limits set by the Kingdom’s energy ministry and remains committed to OPEC+ agreements to maintain market stability while supporting a responsible energy transition.
CERAWeek 2025: Shaping the Future of Energy Sustainability
The CERAWeek 2025 conference, themed “Moving Ahead: Energy Strategies for a Complex World,” has gathered more than 10,000 participants from over 2,050 companies and 80 countries. With over 1,400 expert speakers, the event serves as a global platform for discussions on energy security, climate policies, technological advancements, and strategies for a sustainable future.
As the world moves toward decarbonization, energy leaders at CERAWeek are emphasizing the need for an inclusive approach that ensures economic stability, energy security, and environmental responsibility.
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