Amin Nasser, CEO of Saudi Aramco, expressed a “fairly bullish” outlook on China’s oil demand, particularly in light of the government’s recent stimulus package aimed at boosting economic growth. Key points include:
Increased Demand for Specific Fuels: Nasser highlighted a growing need for jet fuel and naphtha, driven by the rise in liquid-to-chemical projects in China, which are essential for the electric vehicle (EV) and solar panel industries.
Chemical Industry Growth: The demand for chemicals is expected to surge as China transitions towards more sustainable energy sources, indicating significant growth potential in this sector.
Oil Demand in the Global South: Nasser noted that while energy transitions are underway, oil demand in developing regions is likely to continue growing due to rising living standards and economic expansion. He projected that over 100 million barrels per day may still be required by 2050, contrasting sharply with more pessimistic forecasts.
Energy Transition Challenges: He pointed out that the energy transition in Asia is progressing more slowly than anticipated, with conventional energy sources still meeting a large portion of energy needs. Despite substantial investments in renewable energy, oil and coal demand remains at all-time highs.
Call for Inclusive Policies: Nasser emphasized the need for developing countries to have a greater role in climate policy-making and advocated for an energy mix that aligns with their economic realities.
Overall, Nasser’s comments reflect a cautious optimism regarding China’s oil demand and a recognition of the complexities involved in the global energy transition.