Davos 2020

[M012-02] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:00:27 · Davos 2020 · 2020-01-23 · مشاهدة عند هذا التوقيت

Well, thank you very much. I am glad to be here with you, it is my first time to be in Davos and so, this makes me, bear what is so-called the orientation here. Without much introductions, I know that we have lots to talk about, though few minutes to share amongst us. Therefore, I just confine my response to this question by saying: since we have seen our market and the entire country’s production comes almost to a complete halt, and yet prices come down as this only happens when we have an OPEC Plus attending in the market. If has it not been for OPEC Plus, as obviously Saudi Arabia, and Saudi Aramco and the work of the government of Saudi Arabia none of that would have happened.

[M012-03] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:01:26 · Davos 2020 · 2020-01-23 · مشاهدة عند هذا التوقيت

Again, I just want to put that question for all of you, and for the audience who are going to be watching us now: ''How, on earth, could we have mitigated the impact of what happened to Abqaiq and Khuris in such timely manner?'', ''What would have happened to the world supply of energy, and oil in particular?'', and ''How much that would have had an impact on the world economy as well?''.

[M012-04] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:02:01 · Davos 2020 · 2020-01-23 · مشاهدة عند هذا التوقيت

What you see today is a very attentive to OPEC, and an OPEC Plus. We are vigilant of what is happening to the market, and sees that there is an attendance to this market, a responsible responsive attendance; otherwise, you would not see that productionhalt in Libyawhich started two days ago, and yet, you had two days of consecutive lower oil prices. But what we are after here is not to be price responsive as opposed to be supply responsive,and Looking at the whole sustainability of the short-term and long-term markets without which I think we will be defeating ourselves in focusing on just the short term or just the long term.

[M012-06] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:03:20 · Davos 2020 · 2020-01-23 · مشاهدة عند هذا التوقيت

you and I were participating in the Russian energy week, and within that panel, I raised two issues which truly appeared somewhat foreign at that time, although we were just out of Abqaiq situation, but I remind you, and you could, by the way, look it up, as it is in the public domain where I said: ''Don't be surprised when talking about trade issue for example.

[M012-07] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:03:58 · Davos 2020 · 2020-01-23 · مشاهدة عند هذا التوقيت

AS I said, at the end of the day, I could see the US and China resolving this issue because neither the US nor China had lost the ability to have sensible people to attend to these issues. I also flagged the issue of supply and concern of supply because in that discussion, we spent a lot of time talking about demand, that is emanating from this so-called ''dark Black Swan scenario'', where were big trade concerns about the growth and the economy, this and that. Indeed, it was, like a pessimistic time. I raised that issue, and said that all the trade issues were resolved, but the supply issues would be the focal point indeed it is a focal point with no doubt.

[M012-08] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:05:04 · Davos 2020 · 2020-01-23 · مشاهدة عند هذا التوقيت

The issues of coming from the country like Libya and the concerns about the Middle East are important, but more importantly, is also the big question on shale oil and sustainability of the numbers that it has been projected for this year. I know that Daniel is better than me in doing that, but what I see now is that there are a lot of questions about ''how much shale oil would re-introduce the incremental increase, if this number that we have heard which is1.1 or 1.2 million, this is good them, but if not, we will have to be attentive again.

[M012-10] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:05:53 · Davos 2020 · 2020-01-23 · مشاهدة عند هذا التوقيت

Well, in October people were talking about 1.2 million. However, I still maintained, at least, with their trajectory yesterday, that they were talking about a million barrels of surplus. Indeed, I don't know from where that million surplus would happen if we still have an OPEC Plus agreement, if we still have the potential to continue that agreement, and if we are still talking about probably 400 or 600K of incrementing Shale Oil. I do not know from where these numbers that they keep floating. I am very grateful for the industry, but I don't also comment about the prices because I keep telling people that my personal mentor and example is Alan Greenspan.if Alan Greenspan does not talk about what he will do it with interest rates, I do not talk about what will happen to the prices,.

[M012-12] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:07:04 · Davos 2020 · 2020-01-23 · مشاهدة عند هذا التوقيت

I have developed that talent that is required.

[M012-14] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:07:28 · Davos 2020 · 2020-01-23 · مشاهدة عند هذا التوقيت

My job is to promote Saudi Arabia, but in this regard, I am proud to promote Saudi Arabia because we have got it all. I can tell you, with a great deal of confidence, that whatever Patrick was talking about, and whatever Erickson was talking about, and whatever you just talked about we are already doing it all. I will tell you that we are running with the big ball now, which is called Circle Carbon Economy, taking into account everything that Erickson have said, and everything that Patrick had said. We are pioneers on carbon sequestration. In fact, we have a big project that Aranco is pursuing now. We are doing a lot of efficiency either on upstream, downstream, midstream or even on the demand side at all the levels. We have the lowest carbon intensity in production and extraction.

[M012-16] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:08:29 · Davos 2020 · 2020-01-23 · مشاهدة عند هذا التوقيت

we have all of that. Come and see Saudi Arabia, and we challenge everybody to come up with a record that is like ours. In efficiency, we reduce our consumption and energy intensity in our economy with great deal percentages. We are converting cars, transportation, and every gadget in Saudi Arabia into the most efficient gadgets that you could ever buy in any markets in the world, and manufacturing even better ones. With regard to the issue of climate change, we are involved in a transformative effort, and we are going to be using all available tools.

[M012-17] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:09:23 · Davos 2020 · 2020-01-23 · مشاهدة عند هذا التوقيت

We will save the liquids because we owe to the world that we save our liquids to be exported. We are converting our power sector energy mix, where by 2030, I am particularly sure and keen to deliver on that, because we have a particular boss whose name is "Prince Mohamed", who endeavors, at all over, to ensure that we will become one of the top producers of solar energy and renewable energy. So, actually, I can make a pledge and a commitment that by 2030, I wouldn't be there probably most likely, but I'm sure that by 2030, you will have seen our entire power sector moving, with rarity, in some remote areas where we will use gas, and renewables.

[M012-18] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:10:23 · Davos 2020 · 2020-01-23 · مشاهدة عند هذا التوقيت

We are also plugging ourselves with the nuclear. A lot of people ask: "Why are we are engaged in the nuclear?''. I say simply that we want to have all our options open. In the G20, and it's not distant so far so, people cannot say that they're just putting that story for propaganda, and the PR (public relationships), we are engaged with the G20 in our Saudi Agenda, promoted by Saudi Arabia, promoting a circular carbon economy, and for promoting an initiative of a trillion trees which your excellency, Erickson, was talking about, but honestly we have to be realistic. I looked at the paper that the World Economic Forum did with the IEA on how we could meet the 2%. They are talking that in two years from now, our consumption should come down. 'can anybody in this room with a sensible mind come to that reality, and the gas should start diminishing by 2030', can anybody with any sensibility can see the point for that?''.

[M012-19] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:11:38 · Davos 2020 · 2020-01-23 · مشاهدة عند هذا التوقيت

I like what Patrick was saying which, by the way, I said in just a few days ago in the sustainability conference in Abu-Dhabi by saying that we should be an energy source neutral, as long as we attended to the issue of mitigating emissions of all the gases, and I repeat of all the gases, not just that are emanating from energy. There are all sorts of gases that are coming from feedstock, and all sorts of energy sources. We have to be involved, if we really seriously want to be attentive to the issue of climate change, we should be comprehensive, and we should be engaged in every tour using every tool in our kit to mitigate all of these gases.

[M012-20] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:12:36 · Davos 2020 · 2020-01-23 · مشاهدة عند هذا التوقيت

We look at the cheapest cost approach and option. We should not co-mingle politics with climate change; climate change is an endeavor that will help sustainability such as sustainability of economy, and sustainability of living. Co-mingling with security of supply that is something I would call it purposely abusing a concept that we should really hold it up high.

[M012-21] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:13:16 · Davos 2020 · 2020-01-23 · مشاهدة عند هذا التوقيت

I have two footnotes. first, we have already been in transition in Saudi Arabia, because I am not longer the minister of oil or even my predecessor minister, he has been the minister of energy as I am, and we are looking at the whole ecosystem, and we are as a ministry are enabled to oversee the whole system including the challenges that could be we faced as energy producers rather than an oil and gas producing. Another full note is just Patrick teasing me about his latest adventure, because he had submitted 4 different offerings for 4 different projects, and among of them is solar project, and wind project in Saudi Arabia, and it is have been reviewed. That is why he is teasing me, but the least cost developer will take the project.

[M012-23] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:21:00 · Davos 2020 · 2020-01-23 · مشاهدة عند هذا التوقيت

I want to tell you how relaxing my job is, we are cool and calm in Saudi Arabia where attending to our own agenda. I had to advise people from avoiding being manipulated, and being intimidated. The way which we do things in Saudi Arabia is to avoid these intimidations here and there, we do not hear this non-constructive criticism, and we try to focus on what we do, and what is right, and what is consistent with our record. We feel strongly that we have a record that we want to preserve and maintain because it is our pillar to gain more confidence of our customers, our clients and the world.

[M012-24] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:15:32 · Davos 2020 · 2020-01-23 · مشاهدة عند هذا التوقيت

As we promised you 60 years ago, we are still maintaining our promises, and we will carry on performing our promises for being responsible producers, with the notion that you also want to continuing being reliable producers. You have to come out of the closet and say that this is doable, and this is undoable, this is possible, and this is impossible, and without it, you are not behaving and conducting yourself as a responsible producer. Indeed, this is not about promoting oil, promoting gas, or promoting renewable, but it is about promoting prosperity and sustainability for the world, where I do not want to convert the discussion as the North and South dialogue and etc., but there is a lot of the growth should happen in terms of well-being and economic growth in Africa, and Asia.

[M012-25] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:16:35 · Davos 2020 · 2020-01-23 · مشاهدة عند هذا التوقيت

These countries and these societies need to move from energy poverty, need to move to a pattern of sustainable development, and need to move to a level of industrialization. They should not have to carry the burden of the previous industrialization, as it is not fair and not equitable.

[M012-26] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:17:02 · Davos 2020 · 2020-01-23 · مشاهدة عند هذا التوقيت

I have always hated that concept of the top-bottom approaches, as it includes an element of condescending, and imposition of agendas that are pertinent, and may be of worthiness to those who are propagating it, but it is only attending to their own concerns, and does not address those who are at a certain different level of development or a certain level of aspiration, and they're not there yet. With that in mind, I would like to make one suggestion, as being proactive country as we are now, =that if you are enabled us next year to put together a full-fledged workshop, demonstrating and showing you what Saudi Arabia is doing in this energy sphere across the board, and we will be more than happy to host it, and we will be more than happy to open it for anybody to come.