RIYADH: The energy crisis in Europe will accelerate the oil and gas sector’s transition to renewables and hydrogen, Saudi Minister of Investment Khalid Al-Falih said.
Speaking at the Future Investment Initiative in Riyadh on Oct. 25, he added that the world has witnessed many transitions, with the security transition being the most prominent.
Referring to Europe, Ukraine, and China and Taiwan’s crisis, he said: “We have this transition taking place and I believe, and it's going to, continue and perhaps to continue to accelerate.”
Al-Falih pointed out that there has also been a transition in trade and supply chains, noting the impact of globalization on them.
“If you think of these, each one of them is subjecting countries, companies and individuals to insurance premiums.”
Speaking on the economic transition, he said higher inflation and higher premiums that are paid “are setting the stage for long lower income and growth.”
With regards to the Kingdom’s Vision 2030, he said it “was designed for the world we are living today and the world we are going to live in 10-15 years from now.”
During the business forum, Al-Falih noted that the US is well known to be a friend, pointing out that both countries enjoy “fantastic” relationships that go back to the 1930s.
Most recently, an escalating dispute over the decision by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, to cut oil production has put the US and Saudi Arabia in a tug of war.