Aramco CEO in call for ‘ultra clean energy’

“We must continuously remind all our stakeholders that we are a global industry at the cutting edge of science, technology, engineering and logistics, supported by a complex global supply chain,” Nasser said. (AFP)
Updated 11 September 2019

Aramco CEO in call for ‘ultra clean energy’

  • Oil giant chief takes aim at climate change deniers during global oil industry gathering in Abu Dhabi

ABU DHABI: There is no limit to the oil industry’s potential if it can meet society’s demand for “ultra clean” energy, Amin Nasser, the president and chief executive of Saudi Aramco, told delegates at the World Energy Congress in Abu Dhabi.

“The world faces an incredible climate challenge and we need a bold response to match. In my view, that means the entire industry must come together around a new mission beyond our gates of making oil and gas much cleaner across the full spectrum of end-use applications,” Nasser said.

His comments were seen against the background of Aramco’s long term strategy to be regarded not just as a pumper of crude oil, but as a diversified high technology energy group with a strong sense of corporate social responsibility. Nasser spoke recently of a “crisis of perception” in the oil industry.

“We must continuously remind all our stakeholders that we are a global industry at the cutting edge of science, technology, engineering and logistics, supported by a complex global supply chain,” Nasser said.

In an apparent swipe at climate-change deniers, he hit out at those who do not recognize the need for alternatives to hydrocarbon fuels to meet rising global energy demand. 

“Many governments are adopting policies that do not appear to consider all the complex aspects of global technology, the long term nature of our business, and the need for orderly transitions — policies that seem to assume there are quick and easy answers to the many challenges that alternatives face,” he said.

Nasser added that throughout Aramco’s history, it had a competitive edge in four key areas: Resource abundance, safe production, reliable supply and affordability. “But meeting society’s expectations requires a fifth. Quite simply, our products need to be much cleaner,” he said.

He added that the world was “at a turning point” in the search for cleaner forms of energy. “The good news is that we are not starting from scratch,” he said, highlighting Aramco’s halt to gas flaring, its low upstream carbon intensity, and low methane levels by industry standards.

He also underlined Aramco’s commitment to a range of technologies with transformative potential for the whole global oil industry, like advanced integrated engine fuel systems and carbon capture techniques.

“This is the latest turning point in our history, and we must, once again, lead the turn,” Nasser said.

 


Oil surges, stock futures slip after attack on Saudi facility

Updated 9 min 4 sec ago

Oil surges, stock futures slip after attack on Saudi facility

  • Oil prices surge on fears of global supply disruption
  • Safe haven gold, Japanese yen rise, stock futures slip
SYDNEY, AUSTRALIA: Oil prices surged to six-month highs on Monday while Wall Street futures fell and safe-haven bets returned after weekend attacks on Saudi Arabia’s crude facilities knocked out more than 5% of global oil supply.
US crude futures were last up 11% at $61.10 a barrel, coming off highs on expectations other global oil suppliers would step in to lift output. Brent crude soared 13% at $68.06 after earlier rising to $71.95.
Yemen’s Iran-backed Houthi rebel group had claimed responsibility for the attack, which hit the world’s biggest oil-processing facility but a senior US official told reporters on Sunday that evidence indicated Tehran was behind it.
The attacks heightened investor worries about the geopolitical situation in the region and worsening relations between Iran and the United States.
Those fears powered safe-haven assets with prices for gold climbing 1% in early Asian trade to $1,503.09.
Moves in Asian share markets were small, however, with Japan shut for a public holiday.
MSCI’s broadest index of Asia-Pacific shares outside Japan was a tick lower at 515.4. Australian shares were down 0.1% while South Korea’s KOSPI was a tad higher.
E-Minis for the S&P 500 were off 0.4% while those for the Dow eased 0.3%.
“If risk appetite collapses due to fears of worsening middle east tensions in the wake of any retaliation to the drone attacks, some emerging markets could face a double whammy of pressures,” said Mitul Kotecha, Singapore-based senior emerging markets stratgist at TD Securities.
“In Asia, the most risk sensitive currencies are Indian rupee, Indonesian rupiah and Philippine peso .”

Bonds and currencies
Among major currencies, the Saudi news pushed the yen up 0.4% to 107.64 per dollar while the Canadian dollar rose 0.5% in anticipation of higher oil prices.
The euro was little moved near a three-week top while the pound hovered near Friday’s two-month highs. That left the greenback down 0.15% at 98.105 against a basket of six major currencies.
The risk-sensitive Australian dollar was down 0.5% against the yen, snapping nine straight days of gains. The kiwi dollar slipped to a one-week low on the yen.
“One immediate question this (attack) poses for bond markets is whether a further rise in the inflation expectations component of bond yields — which have proved historically sensitive to oil prices — will give this month’s sharp bond market sell-off fresh impetus,” Attrill added.
“Or will safe haven considerations dominate to drive yields lower? Watch this space.”
In early Asian trading, futures for US 10-year Treasury notes rose 0.3%, indicating yields may slip when cash trading begins.
Global bonds were sold off last week, sending yields higher, led by a broader risk rally on hopes the United States and China would soon end their long trade war. Better-than-expected US retail sales data also boosted sentiment.
Chinese data for industrial production, retail sales and fixed asset investment will be released later on Monday, which could help set the tone for this week’s trade.
Investors also await the outcome of the US Federal Reserve’s policy meeting on Wednesday at which it is widely expected to ease interest rates and signal its future policy path.