The world needs a new strategy for the energy transition

The author contends that the global energy transition must shift from a narrow focus on phasing out hydrocarbons to a broader strategy of reducing emissions from all energy sources. This approach is presented as essential for meeting the rising energy demands of developing nations, who account for 63% of global energy demand. The text emphasizes that oil and gas will remain critical to the energy mix and the manufacturing of renewable equipment, suggesting that a premature transition could inadvertently increase reliance on coal. The document highlights the role of carbon capture and storage (CCS), hydrogen, and energy efficiency, while detailing Aramco's specific investments in sustainability R&D and its goal of net-zero Scope 1 and Scope 2 emissions by 2050.

• A pragmatic energy transition requires a technology-agnostic approach where hydrocarbons coexist with renewables and hydrogen, as oil and gas are expected to remain significant in the global energy mix. The share of hydrocarbons in the global energy mix only decreased from 83% to 80% during the 21st century.
• Developing countries are central to energy demand, accounting for 63% of the global total. In the current year, these nations have driven oil demand growth by more than two million barrels per day.
• Rapidly replacing oil and gas with alternatives may be counterproductive to emissions reduction by forcing a return to coal usage. Hydrocarbons are also necessary as feedstocks for manufacturing renewable energy equipment.
• Aramco is implementing specific sustainability initiatives, including a $7.5 billion venture capital programme expanded in January and a target of net-zero Scope 1 and Scope 2 GHG emissions by 2050. In 2023, its upstream carbon intensity was 10.7 kilograms of CO2 per barrel of oil equivalent.
• Investment is needed in carbon capture and storage (CCS), hydrogen, and energy storage, though private capital appetite for these has historically been limited. Aramco is specifically exploring blue hydrogen, blue ammonia, and CO2-curing cement technology that can result in a 20% CO2 uptake in cement.

APA

Al-Dhubaib, F. (2024). The world needs a new strategy for the energy transition. World Economic Forum. https://www.weforum.org/stories/energy-transition/the-world-needs-a-new-strategy-for-the-energy-transition/

Chicago

Al-Dhubaib, Fahad. The world needs a new strategy for the energy transition. World Economic Forum, 2024. https://www.weforum.org/stories/energy-transition/the-world-needs-a-new-strategy-for-the-energy-transition/.

Wikipedia

{{cite press release |last1=Al-Dhubaib |first1=Fahad |title=The world needs a new strategy for the energy transition |publisher=World Economic Forum |date=10 May 2024 |url=https://www.weforum.org/stories/energy-transition/the-world-needs-a-new-strategy-for-the-energy-transition/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{aldhubaib2024world, author = {Al-Dhubaib, Fahad}, title = {{The world needs a new strategy for the energy transition}}, publisher = {World Economic Forum}, year = {2024}, month = may, url = {https://www.weforum.org/stories/energy-transition/the-world-needs-a-new-strategy-for-the-energy-transition/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }