Energy leaders call for energy realism

Middle East energy titans have called for a more realistic energy approach at CERAWeek 2025 in Houston

In a keynote address, Aramco president & CEO Amin H. Nasser highlighted the risks of current energy transition planning, and stressed the urgent requirement for a new global energy model.

“The greatest transition fiction was that conventional energy could be almost entirely replaced, virtually overnight… Hydrocarbons still provide over 80% of primary energy in the US, almost 90% in China, and even in the EU it is more than 70%… New sources add to the energy mix and complement existing sources. They do not replace them... New sources cannot even meet the growth in demand, while the proven sources needed to fill the gap are demonised and discarded. It is a fast track to dystopia, not utopia.”

Investment in all sources is needed, he said, with new and alternative energy sources complementing rather than replacing conventional energy, in a model that serves the needs of developed and developing nations alike.
“The future of energy is not only about sustainability. Security and affordability must share the stage. With all energy sources working in harmony as one team, delivering real results.”

Echoing this message, His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC managing director and group CEO said that he was glad to address the event at a time when “energy realism is taking centre stage”, highlighting the UAE’s pragmatic approach which focuses on “market realities rather than unrealistic mandates”, and calling for “pragmatic actions and policies that are pro-growth, pro-investment, pro-energy and pro-people.”

“We need every energy option available. An ‘and-and’ approach to meet rapidly growing energy needs.

“We know that by 2035, there will be almost nine billion people on this planet. In line with this growth, oil demand will increase from 103 to at least 109 million bpd. LNG and chemicals will expand by over 40% and total electricity demand will surge from 9,000GW to 15,000GW, which is a staggering 70% increase. We will need more LNG, more low-carbon oil, more nuclear and more commercially-viable renewables to meet all this demand.”

AI energy requirements

This lesson has been thrown into sharp focus by the rise of AI and its energy requirements.

“Applications like ChatGPT use 10 times as much energy as a simple Google search and are growing exponentially," said Dr Al Jaber. "By 2030, in the US alone, data centre power demand is expected to triple, accounting for more than 10% of US electricity use.

“You cannot scale AI without access to energy. Simply put, the true cost of AI is not just in code, it’s in kilowatts. The race for AI supremacy is essentially an energy play.”

CERA Week also heard from IEA chief Dr Fatih Birol who, in an about turn from the IEA’s earlier position that there should be no new investment in oil gas and coal in order to meet climate targets, highlighted the need for new oil and gas investments to offset the decline in existing fields.

While bp CEO Murray Auchincloss expanded on the company’s strategic reset, which will see it boost oil and gas investment and cut investment in renewables in a bid to maximise returns and value for shareholders. The company plans to ramp up oil and gas investment to US$10 bn a year and grow production to 2.3–2.5mn bpd in 2030, targeting 10 new major projects to start up by end 2027, and a further 8–10 by end 2030.

The US and the Middle East will be core areas for growth, he said.

“We’re back to our roots in terms of exploration, expanding in the UAE, Iraq, Libya and Oman.”