In Saudi Arabia, Saudi Aramco announces that restrictions on the transport of Russian crude and products are inappropriate. The Saudi company says this move will add a new layer of uncertainty to the oil market.
Exports on the rise
Saudi Arabia fears the limitation of Moscow’s ability to generate energy revenues from crude oil. Indeed, the G7 and the European Union want to introduce restrictive measures by capping prices. These measures are expected to be implemented in December and February.
Saudi Arabia’s energy minister says the kingdom’s crude supply terms to Europe would remain unchanged. Supplies to Europe from Saudi Arabia double between September 2021 and September 2022. The number of barrels per day increases from 490,000 to 950,000.
Saudi criticism
Saudi Arabia’s energy minister confirms crude deliveries to Germany, Poland and other European countries. However, thehe CEO of Aramco is taking a stand against what he calls a flawed energy transition plan. He notes that the global economy is shifting more to dirty coal than to low-carbon fuels.
Saudi Arabia compares global energy transition plans to “sandcastles” being washed away by the waves of reality. Riyadh believes that these energy transition plans are still modelled on a Western viewpoint. Prism that the rest of the world should follow.
The use of coal
The dismantling of fossil and nuclear power plants requires an alternative energy source. The CEO of Aramco regrets, in particular, the use of coal representing a consumption of 8 million tons. This is the highest consumption since 2015.
The company is also announcing the creation of a $1.5 billion fund to facilitate the inclusive energy transition. The largest oil exporting company will invest through its venture capital arm, Aramco Ventures. In particular, the Saudi company will continue to develop blue hydrogen, produced from the steam reformation of natural gas.
