RIYADH: High-cost, inefficient, and high-carbon intensity producers will not be part of the future oil market, said Saudi Aramco chairman. 

Addressing the IPTC 2022 in Riyadh, Yasir Al-Rumayyan said Aramco has set its net-zero ambition, and they are currently way ahead of Oil and Gas Climate Initiative’s 2025 target of upstream carbon intensity. 

“With an Upstream carbon intensity of 10.6 kg of CO2 equivalent per barrel of oil equivalent, we are amongst the lowest of any major producer in the oil and gas industry today, well ahead of the OGCI’s 2025 target on Upstream Carbon Intensity of 17.0 kg of CO2 emitted per barrel of oil equivalent,” said Al-Rumayyan. 

The oil producer is currently conducting extensive research on carbon capture, utilization, and storage.

Aramco Chairman also noted that the company received 860 US patents in 2021. The top official said Aramco is making use of AI and advanced data analytics across its production facilities, along with the deployment of drones and robotics in air, land, and sea. 

He said energy transition takes time. “For instance, after years of impressive growth, there are 10 million electric vehicles on the road, which is less than 1 percent of the global car fleet.” 

Oil and gas are part of the ongoing transition to renewable energy resources, said Saudi Aramco chairman, adding that new energy sources depend on materials that can only be produced with hydrocarbons.

The top official said the Saudi Aramco has taken several measures to achieve net zero targets but that does not mean the company is “getting out of oil and gas.”

“We intend to remain the world’s top producer,” said Al-Rumayyan.  

He said energy transition takes time. “For instance, after years of impressive growth, there are 10 million electric vehicles on the road, which is less than 1 percent of the global car fleet.”