Despite US-Iranian Tension, Saudi Arabia Wants Sustainable Oil Prices

Published January 14th, 2020 - 08:00 GMT
Despite US-Iranian Tension, Saudi Arabia Wants Sustainable Oil Prices
The energy sector has entered a new era of challenges, especially in light of the wrong approaches in dispensing with the traditional energy mix and to opt for new energy sources within a few years. (Shutterstock)
Highlights
Over 15,000 delegates from 70 countries taking part in global event in Dhahran

Saudi Arabia will work for oil market stability at a time of heightened US-Iranian tension and wants to see sustainable prices and demand growth, Energy Minister Prince Abdul Aziz bin Salman said on Monday.

He said it was too early to talk about whether the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, would continue with production curbs agreed under a deal that expires in March.

“As tension remains high in our region, Saudi Arabia will continue to do all it can do to ensure stable oil markets,” the minister said.

He was delivering the keynote address at the International Petroleum Technology Conference (IPTC) hosted by Saudi Aramco in Dhahran.

“We would like to have a stable oil market, sustainable growth in terms of demand, sustainable growth in terms of supply,” he said, adding that both high and low prices were undesirable. “The worst thing is to have low oil prices that permanently damage industry.”

Prince Abdul Aziz said the US is a strategic partner with a big role in international security. 

“We’re leaving it to our friends in the US to conduct themselves in the manner they see fit,” he said.

Saudi Arabia is the most “reliable and responsible supplier” of crude, the minister said.

More than 15,000 delegates from 70 countries are taking part in the conference.

Held under the patronage of Crown Prince Mohammed bin Salman, the 12th edition of this leading international oil and gas conference is being held for the first time in Saudi Arabia.

With Saudi Arabia hosting the G20 Summit this year, Aramco President and CEO Amin H. Nasser congratulated Saudi government entities on their successful efforts to have the prestigious industry conference held in the Kingdom.

Nasser emphasized the need to transition to a lower carbon energy mix, and highlighted the role that the energy industry has played in creating the economic prosperity that the world enjoys today.

“With IPTC 2020, we have the perfect platform to push forward in our efforts to demonstrate that our industry is an integral part of the long-term solution to global energy challenges,” he said.

“We have the capability to be leaders when it comes to addressing the need for more energy with less emissions, and I am confident that our industry has the talent and the innovative mindset required to find the best and most pragmatic solutions.”

Nasser participated in a plenary session with industry CEOs to discuss the theme: “Vision to Prosperity: A New Energy Era Emerges.”

Aramco’s Senior Vice President — Upstream Mohammed Al-Qahtani, Chief Digital Officer Nabil Al-Nuaim, and Vice President for Petroleum Engineering and Development Nasir K. Al-Naimi are also scheduled to speak during the conference.

The IPTC, which concludes on Wednesday, will for the first time incorporate workshops examining the importance of diversity and inclusion in the sector, an area in which Aramco has significantly advanced in recent years.

Saudi Aramco Chairman Yasir Al-Rumayyan also gave a keynote speech.

Al-Rumayyan said the energy sector has entered a new era of challenges, especially in light of the wrong approaches in dispensing with the traditional energy mix and to opt for new energy sources within a few years.

He added that such approaches have serious strategic implications for the future security of the global energy sector.

He said major changes in the sector take a long time to materialize on the ground, and the traditional sector is not currently facing real competition from alternative energy.

Al-Rumayyan stressed the importance of technology and modern technologies in the energy sector’s success and sustainability, to be able to secure energy even in difficult times.

He noted the need to use technology to mitigate the environmental impact of oil and gas, and to provide energy at affordable prices.

This will create great opportunities for companies working in the global energy sector to make progress in meeting aspirations for a clean and environmentally friendly energy mix, he said.


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