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Saudi Aramco CEO Amin Nasser says the world is facing an energy crisis of its own making because it underinvested in oil and gas, failed to create sufficient availability of alternative energy and did not prepare a back-up plan. "When historians reflect on this crisis, they will see that the warning signs in global energy policies were flashing red for almost a decade," Nasser told the Schlumberger Digital Forum in Luzern. Nasser said industry players had warned for years that a sustained decline in oil and gas investment would lead to a lag in supply growth, with repercussions for markets and the global economy. At the same time, unrealistic scenarios and flawed assumptions had undermined energy transition planning because they had been "mistakenly" viewed as facts, he added. "These are the real causes of this state of energy insecurity: underinvestment in oil and gas, alternatives not ready and no back-up plan. But you would not know that from the response so far," Nasser said. Saudi Arabia is pressing ahead with plans to raise its oil production capacity to 13 million b/d by 2027 and potentially increase its gas capacity 50% by 2030, allowing it to phase out the use of liquid fuels for power generation.

Topics:
Capital Spending, Oil Supply, Gas Supply
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