J.P. Morgan Thought Leadership Series

[M038-02] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:00:54 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

Thank you, Christyan and I am very grateful for giving me this opportunity. Jamie and I have been talking about you reaching out to our friends in the US and your good clients, as I have always said to you and others who are in this industry or at least watching this industry, that interacting with those who have interest in this area and this field is a must and I would go as much as calling it a duty, we have lots of ambitions to talk about, we have done quite a few things as Saudi Arabia in the past, and we want to make sure that people, those who are interested are aware of what we want to do in the future, and also, if I humanly can take a bit of sympathy for what we had been going through over the last year, so I am very grateful for the opportunity.

[M038-05] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:03:57 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

If you permit me to have, I know its early in the US, but if you can allow me to have an early sort of happy hour and if you allow me to be somewhat reminiscent of my old years when I first joined, I would have to say that my first encounter with J.P. Morgan was somewhere around 1988, I was a new cadet working with Mr Calbera, then the Chairman CEO of Aramco, on our first joint venture which culminated in creating star enterprise with Texaco at that time, and my first visitation to J.P. Morgan was when windy winter day in Wall Street and for some reason, odd reason, instead of walking into J.P. Morgan, I walked into Morgan Stanley and I lost direction, I had to stand getting to call in one of those standing phones, it was not a booth and it was just a freezing windy day and you can imagine how cold it is in those winter days with the windshield as intense as it could be wondering around when can I find J.P. Morgan building? and it took me 10 minutes and screaming my head off to figure out that building, which was like 100 yards away, that was one day I would never forget. But again, as you have rightly said, J.P. Morgan has been a recognized bank in Saudi Arabia, be it at the sector or even with SAMA and virtually I would call it the one of the institutions that we respect and also ensured that we continue that relationship because it delivered us both good achievements in the past and hopefully in the future.

[M038-06] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:06:22 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

Back to your question, it is not a tough question, it is, as I have always said, all under the bridge, but I think if I could be helpful to everybody, there are quite a few lessons learned, I could call them, that people need to continue remembering. First of all, we were proven as Saudi Arabia that had people taken a proactive role in the beginning. I would not say we would have mitigated the whole situation, I would probably say we would have reduced the impact of the situation, albeit I do not think anybody in planet Earth could have imagined that the COVID would reduce demand in April by almost 25 million barrels, which is 25% of what has been consumed globally, which is something that I am sure that I have not seen it in my career, which extend to even if you plug in my work with the university doing the same thing, it would be about 38 years, I have not seen anything like this, I have not seen anybody who had seen anything like this, and therefore if we are to be presumptuous and assumed that we have done the cuts that we were talking about, then in early September, March, it would have been a drop in the bucket, I think what agitated the market more was the free-for-all approach which only induced probably 2 or 3 million barrels on top of what we could have reduced, which is the 1.5 million, again, I would challenge anybody to come with any model that can tell me that the situation in April would have been mitigated.

[M038-07] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:08:28 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

It would have been less politicized, that is for sure, but again, it would probably be off-mark by 4, 5, $6 at best 7, but that does not change anything, the other lesson learned, I think, which is a global lesson is that markets need to be regulated and without a type of collective effort to regulate markets like what the central bankers would do, I think we could go through the same scenario. Not necessarily for political reasons, but actually when there is no guidance in the market and there is a total collapse in demand or any type of other crises, these things swings both ways. Let us assume there was shortages of supply and again you need that global collective effort to attend to this situation. In both ways, the idea of having a so-called OPEC Plus is mandatory, I think the whole world got awaken to that reality in April, that is why we had a back-to-back meeting between OPEC and OPEC Plus and then it was followed by an emergency G20 meeting where, in my judgment, all the taboos were put aside, that is why you have had the statements from too many countries, which, in my view, was considered to be religious not to be seen rubbing elbows with OPEC or OPEC Plus or the acts of OPEC and OPEC Plus, I think it was a legitimate act and a prudent act because at that time there was no other way to attend to a more stable market and subsequently a more stable industry without these measures being taken.

[M038-08] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:10:46 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

These are the two main lessons, and the third one, of course, is that, as I have always said from day one I got into this job, I am a person who believe in consensus building, I know it takes time and effort, but you cannot assume that there is a player or any player who would prevent that consensus to happen and thinks that things will move in the right direction that is the situation we were into in 6th of March and that is the result of where we were, if we do not derive consensus and people refrain from the idea of the so-called the buck stops here or there.

[M038-10] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:12:28 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

Again, I would ask whoever is hearing me or seeing me today, I do not think there is a precedent to what we have been going through and still are going, so what I look at, I look at many things, I certainly look at the stocks, but I look at lockdowns, I look at the spread of before we used to look at when vaccines will be available. Now we transcended that period and now we are looking at how fast and quickly spread would be of vaccines and how much people will be amenable to taking that vaccine, these are probably the most fundamental pillars of what I look at, because what comes next is our consequences of that. If vaccination becomes available and vaccines become available and vaccinating become popular, you tend to try to see a kind of an end of the tunnel, albeit cautiously, albeit not with that great deal of utopia, it would be gradual and phased in, but at least the concept of expectations is something that I have learned and keep holding up highly because I work on expectations, that is one of other things, it is not about actual or factual, it is about expectation.

[M038-11] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:14:04 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

The psychology of the market at times like this is a big determinant or detrimental to how things may evolve, that is why I feel strongly that we should not in any way target anything but to improve the psychology of the market and the psychology of the market would only be accommodating and it is an intelligent market, for sure and only people when they see that there are bright points that are emerging in terms of mobility, in terms of a flow of data that allow people to think that mobility is improving the economy and therefore effectual actual things that are you know, planes are flying, cars are moving around, public transportation are opening, restaurants and outdoor activities, shopping and what have you are open, these things will propel more confidence to those who are watching the markets.

[M038-13] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:16:07 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

Can I share with you something else?

[M038-15] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:16:13 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

I am very proud of this mug because I got it as a present from Texaco when we first signed the joint venture in January 1989, and I had a set of ten of them, what remains of them is about two or three and I want to make sure that I keep at least one intact, but I am so proud of that cub because it brought me together with J.P. Morgan, It brought me with Texaco, so there is a bit of sentimentality about it.

[M038-17] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:16:53 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

But you know, I think what we saw in April made people more convinced about stringent commitments to what they willingly, voluntarily agreed to, keep in mind that all of OPEC activities or even before OPEC Plus, these are arrangements to try to discipline or stabilize markets, they are voluntary in nature, there is nothing legal about it, there is not anything that restrain or restrict sovereignty or sovereign decision making, so in all of the above, be it OPEC proper or OPEC Plus, it is all voluntary endeavors, collective voluntary activity.

[M038-18] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:17:53 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

Now, you cannot be voluntary acting and yet assume that you will be committing voluntary, and then you do not abide by what you have promised or kept saying that you will do, because if you do not, others will not do and then the whole thing could cascade back to nothing. Whether it is my destiny, but it is a fact that I have seen it coming and have seen it going over since June 1987, when I first plugged in as a member of the Saudi OPEC Team, and as you would say in the States, I have seen them coming and I have seen them going, I have seen agreements coming and I have seen them going and the very principle and the very basic reason for seeing them going is lack of discipline and therefore, for someone like me, if I do not watch out for how I can, if you could call it, beat the record in disciplined commitment to an agreement which is unprecedented, also. This agreement goes on for two years, started in April 2020 and would finish in April 2022. If you and everybody do not discipline themselves the leakages aside from it may bring the collapse of the deal, the leakages would hurt your ambition of achieving the balanced market that we are all aspiring.

[M038-20] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:19:48 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

Which was evident that we did collectively with the UAE and Kuwait made additional voluntary cut of a million in July to make up for, with understanding that we started that agreement mid-April and it was tough for people to cut and then we reinstated a cut by end of April to be three months. In itself is about 90 million barrels, which take care of the lagging of OPEC Plus over the last year or so, but fundamentally that also gave us the ability to try continue requesting from our partners to fulfill their commitments, It also earlier on, I felt strongly that not to allow the previous situation that I have witnessed is that we have to have another scheme to allow for compensation and that compensation scheme is workable because of the duration of the deal, it is long and people have to or should compensate, It is not a perfect compensation scheme because there are still two or three countries, two countries of the main countries that have not yet fulfilled their commitment, but it is also a good tool to enhance expectations, this way you know, compliance would be a de-facto thing to happen.

[M038-21] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:21:48 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

I certainly would like to thank many of the governments who did their part in compensating like the UAE, Nigeria, Angola, and I think this month Azerbaijan, we still have two or three countries of the main ones that we are working with them and that is why we extended the compensation scheme to end of September to allow them a time, We have been informed by our friends in Kazakhstan that they will have a maintenance program in August and September and therefore they will be more amenable to do the compensation then, so we are also talking about a volumetric cut as opposed to barrels per day production cut, so we do have a quantification of the cut all the way to end of April, and we need to make sure that everybody delivers.

[M038-23] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:23:37 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

Well, to flag one issue and to complete my argument on April, it is a proven case that free market does not work in commodities, there has to be some type of regulatory reform. Case in point, what happened in April with regard to all the energy industry, including and I do not, by the way, agree with the issue of separating Shell producers from the rest, look at the operators here, the main operators, They are as good as ExxonMobil, Chevron, Occidental, Pioneer and the rest, they are mainly an oil company. We, as in Saudi Arabia, Aramco, would be moving now with the Shell Gas and possibly shared oil too within the kingdom of Saudi Arabia, so I do not create that categorization.

[M038-24] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:24:34 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

What I see is basically and when I was referring to that drill, baby, drill I was just trying to create, of course rumpus for people to hear me, it is very American to do that, but I was not reflecting on that, I think I was reflecting more on the model and the business model, that I see and you will see people in Pioneer, Occidental talking about that and all of those main operators, you would hear them as I do hear them saying that we have changed our business model and therefore “drill, baby, drill” is referring to the old mother, and what companies are doing now is to ensure that they go back to the original model, which is yes, produce, yes, continue investment, y es, continue to grow, but also yes, to pay dividend and ensure that the shareholders recognize that their well-being and wealth is being enhanced as a result of investing in these companies, this is the kind of reference I was making in it. Obviously if you can see our record with regard to Shell oil, there are so many statements that my predecessors have made Mr Naimi, Mr Falih, myself. we never had an issue or a so-called zero-sum game with Shell oil producer, others did but when the havoc happens, I cannot think of any hydrocarbon producer in planet Earth, who is not badly and negatively affected by what happened.

[M038-26] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:27:20 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

Well, the first thing is that I have to realize that I have no jurisdiction over any producer, except calling Aramco every month, telling them what they should produce, that is a foregone conclusion. The second thing People need to learn from their previous performances, so be it OPEC Plus or any other of those who committed to cuts, they really have to discipline themselves to continue the cut and do the cut because in the final analysis, if I do it, you do it, others do it. We tend to benefit collectively, the rest of the industry who are not at liberty to join OPEC Plus or what have you, again, that type of discipline has to happen, but what we watched and saw is by maintaining high prices in the 2010 all the way to 15, beginning of 15.

[M038-27] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:28:28 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

The price signals and the market signals pushed every producer to pump every barrel that they can produce with the so-called wrongful understanding that somebody will maintain these prices high, while said myself I have always often believed that higher oil prices do bring lower prices eventually and low oil prices do bring high oil prices eventually, these two types of extreme are the two incubators of the contrary, if you could call it and here you go, when people invest, taking into account the wrong signal by the time their production comes in stream, that wrong signal is no longer there and inversely I have seen it in the 1980s and 1990s, people were not investing, people were actually divesting and here comes Johnny by the early part of 2000 and onward, you saw what the havoc of the 80s and the 90s did to the industry and that is why you saw primarily high oil prices over the last 20 years, with the exception of 15 years, with the exception of the back and forth of 2015 until today, so the lesson learned is that modesty. I would rather have a stable, sustainable market and I believe that should be a common endeavor for the whole energy producer, then enjoy a hybrid price period then that enjoyment would not be long lived.

[M038-29] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:31:15 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

Well, you just called it a cycle, so with a cycle there is a nib and a flow and I take into account the full cycle, not the first part of the cycle and I ignored the second, so if you take it as a cycle, you have to balance your act in a way that as things go high, you have to prepare yourself for when they come down and when they come down, you should not be naked in terms of high production capacity with big investments that were made and then all of a sudden you realize this investment could not make sense because you either are going to sell that commodity of what source, whatever source at very low prices maybe to some that may not even recover their cost or you continue working on margins with the hope that somebody would blink before you and we go through the cycle.

[M038-30] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:32:18 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

So for me, the best thing for a commodity like oil or gas is to try although things in Planet Earth are cyclical in nature, but the more you could make that cycle more spread or more flat, the better it is because it enable people to see their investment portfolio enhanced and they can recover their investment cost and make some reasonable profit about it. Yes, the world economy do go through cycles, that is the nature of things, but the turbidation and the volatility should be mitigated by a longer span, if you could call it cyclical durations.

[M038-32] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:33:34 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

: I would argue, but I personally focus more on demand and supply as opposed to price.

[M038-34] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:33:53 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

Because people do get to be deceived by fuel They keep looking at, if prices become determinant of investment, you are in for a bad time because it could be directionally high and you invest, and it could be directionally low and you divest or you do not invest and if you go by these so-called price signals, you are in for a bad time because you will miss the cycle.

[M038-36] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:34:51 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

maybe I am off place and I am traditionalist, but you are asking me to encapsulate 33 and few months of experience watching this market and interplays and I find myself still going for that conventional approach, but that conventional approach, I hope that people see that it is delivered.

[M038-38] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:36:02 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

well, we had a very recent experience when the embargo was lifted, they were accommodated and they were accommodated all the way to 3.85 (measuring unit), if I am not mistaken about the number so accommodating Iran or Venezuela and any other countries that are within the so called embargo radar, we had quite a few experiences even in the past with Iraq and Iran in the 1980s because of the war, when the embargo on Iraq was lifted, we have had quite a few experiences, we usually go by how much they were producing before that embargo, once they achieved that, we would assume that they will be go back to the fold of OPEC or OPEC Plus and conduct themselves like any other member country.

[M038-40] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:37:39 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

Who could have predicted that Libya when it comes out of this self-imposed restriction of production that the market would give us the treatment, you had had a million, while the jury is still out 1.2 or 1.3 million, it was introduced ever since November and even the market was continuingly going up with merely the news that the vaccine was formed and trace it to go for it on the day that the announcement was made about Pfizer vaccine and it was just a matter of a week after when this whole situation in Libya was sorted out and production started emerging, so in the same vein, one could project that or hope that, but this is like I hope that whoever is hearing me, look at me now as an analyst rather than a minister.

[M038-41] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:39:05 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

But in my personal judgment and I could be terribly wrong, but I do watch many of you who put these numbers, those crack these numbers about what the Iran is producing now and what Iran is exporting now. Yes, the jury is still out on is it 2 or 2.5, but if you take it as 2 to 2.5 you are really in the ballpark, it would be another 1.3 million or so for them to go back to where they were, I would not argue about can they do the 3.8 after this long stoppage and what have you, I would leave it for their assessment to deliver, we know that there are barrels that somewhere are in a stock somewhere, but I do not know, you hear it better than me, but the jury is still out, there are serious people talk about that Iran is exporting a lot more than what people are putting in their notes.

[M038-43] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:41:19 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

well, I will speak about what we are doing as a government, we are taking into consideration the corporate side especially, that we as a government owns a great deal of these national champions in this sector, such as Aramco, such as SABIC, such as ACWA now we own fund about 50% of it, we believe that what we will do ourselves willingly and there is a good, solid economic case to support it, that we will be the producer of everything, we as a country do not want to be recognized as an oil producing country, we are marching seriously of being recognized as an energy producing country, and along with that our also national champions, so as Aramco too.

[M038-45] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:42:29 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

The way we see the economics of why we can be even a prominent energy producing country is that there is a good case for us to use domestically gas and renewable to energize our power sector. In fact, we just made the case as a result of that, it was out in a statement on Thursday, that we will be able to save somewhere within the vicinity of a million barrels of liquids that are being used today, this this amount can be exported at international prices and we will get the best of too many words, we will have a much more efficient, cost effective power sector and utility and other utilities, including industries resulting from lower power cross curve, we will be reducing our emissions tremendously because more good chunk of our utilities now, they were not only oil burners, but actually they were inefficient, single cycle and all of the above, so it is not just about burning fossil oil or fuel oil, it is also the technologies that were used single cycle, inefficient and therefore you are getting the double whammy from both ends, the emission issue and the lack of efficiency.

[M038-46] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:44:09 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

There is a strong economic case in terms of how much we will spend and how much we will realize, believe it or not, that factor is solid 10 to 1, any economist any our friends here listeners would like to come in Saudi Arabia and show them these numbers, I know it makes lots of eyes turn and twisted and what have you, but this is a fact, so we know also we are not going to be spending, we are going to be investing, so we have a national champion and we will be working with others and we will be buying the power and the kilowatts, and we know if we do it in such a way, that kilowatts cost will be much lower, and we are doing so many other things, we are doing a domestic efficiency program, we do see the result of it good local content, protected markets from bad quality products, lower growth of demand in our local consumption and more emission reductions too, so with that we came up with this concept of circular carbon economy, because again, we want to make sure that we become an international player and fit to be an exemplary for all hydrocarbon producers by saying we all can congregate with everybody in the world planet Earth, that our task, our mission should be emission reduction.

[M038-48] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:46:01 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

If the mission is to reach out to each other in an inclusive way with the challenge to how we can combat emissions and I use the word plural word emission reduction, I think people need to be liberated to use whatever methodology that can enable them to achieve that contribution or how they can achieve their indices in a mindful of their national circumstances. A country like the U.S, Canada, Mexico, Brazil, Russia, Saudi Arabia, Iraq, Algeria have a serious hydrocarbon component in their economy, it would not be fair to assume that these countries will be engaged collaboratively, enthusiastically. If you say what I mean by emission reduction is getting rid of hydrocarbon and you would assume that somebody here or elsewhere and a few of the countries that I just mentioned would fairly agree, that is why we feel that circular carbon economy can deliver too many goods, we can reduce, we can recycle, we can reuse and we can remove with CCUS, carbon sequestration is technology, air capture good technology.

[M038-50] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:48:13 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

No, it is not a secret, Paris agreement talk about net zero, but it talks about net zero with differentiated responsibilities, so I do not think the talk is about do we all, everybody who signed up to Paris Agreement, signed up to a net zero, but it is about how and when and there are countries that have made recently submissions and they tagged in a year and enablers, I am not going to talk about which countries, you can search them up because I do not want to infringe on other people's territories, so it is not about it is not challenging to say we are committing to net zero, if anybody who signed up to Paris Agreement and does not realize that he is committing to net zero, he is really in a bad shape and should have taken good lessons in negotiation before getting himself into that that chamber in 2015.

[M038-51] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:49:34 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

Now, what we are talking about is that those who are Annex 1 countries and they are disciplined in a different way than the others, the others that we worked with the specifically at that time the US administration Secretary Kerry as that time was the Secretary of State. In fact, our team worked well with him to ensure the success of the Paris Agreement, we worked deliberately and we also were congratulated at that time by the administration then, so before us we signed up to it, we were one of the first to ratify that agreement, we were compelled to that agreement, we like that agreement and we will execute that agreement.

[M038-53] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:51:02 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

That question and the other question peak supply give me a kind of a sense of get me into this area of sense of age, again, I would have to repeat I have seen them coming and I have seen them going, we went into peak demand and then we move to peak supply and then we move to peak demand, God knows we may one day go to peak supply, but my experience taught me that I should not be worried about that either way, because if it is peak supply, prices will go high and then there will be people incentivized to figure out a way to bring about technologies that unlock supplies, this is what you had successfully with Shell oils, in Canada also, in many areas even in Brazil so many technologies unlocked resources, when it comes to this so-called peak demand, well, we have seen them coming, but I was attending one of those courses at Stanford, and somebody took us to Berkeley Lab and there was a professor there in 85 and he gave us the lecture, the mother of all lectures, an hour and a half of aggregated models that they were working on a bottom-up approach, then they took care of the number of air conditioning, refrigerators and all of the above and as a result of that aggregated model, they run it and what have you, and then the result of the model, as I can see the professor face glowing with enthusiasm waiting for that year to come to celebrate and he said by 2005, oil will be gone, vanished, it is exactly the wording that he had, I could still see the thunder emanating from his eyes. Go and check 2005 it is, probably one of the best years where demand had grown

[M038-55] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:53:49 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

can I just get now? I know for certain, I do not want people, our friends here to think that I am taking my liberty for not being taking it lightly. No, but I am saying even if that happens, we would be competitively the last man standing, last person just to be politically correct.

[M038-57] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:54:19 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

Last person, No. we are now in this building and this government, we are much more focused on gender equality and therefore, we do not use man or woman, we use person.

[M038-59] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:55:16 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

Okay, I do not mind being too personal about it, but it has been my nature, okay? I have lived with so many different cultures, rubbed elbows with so many different creeds. I get along with so many different nationalities, so many cultures, so many of the various if you could call it the social stratus, and I bond well, actually, with the middle class or the average people or whatever, I do not like this categorization, but it is what is being used.

[M038-60] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:56:07 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

I lived with my wife and children, with many people and I encapsulate the whole thing into very simple thing, if you are very hungry and you are given the same dish every day, you will get bored of it, but if you are to see a buffet with all the varieties of foods and diversity, look at any even flower pot, see one type of flawor every day, you get bored of it, diversity is an acquired taste, It just so happened that I grew up with diversity, I find it enriching, and I celebrate the fact that I am open to different cultures, whether is different. It does not affect me, It makes me feel that I am wealthier, so it is a type of a state of mind, if you could call it.

[M038-61] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:57:15 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

Luckily, I brought that culture with me to my small family, so I have a daughter, I have two boys, we do not talk about these things, we do not talk about religion, we do not talk about color, and we are not absolutely and we really seriously take it with a great deal of affront to start to categorize people based on whatever it is religion, color and what have you because we saw, we felt and we enjoyed, more importantly, that diversity and this so-called boxes that people try to create among themselves is , in my judgment, that it has nothing to do with humanity at all?

[M038-63] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:59:09 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

Can you can you make it over instead of cyclical?

[M038-65] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:59:17 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

: with the biggest stretch of an openness if you can …

[M038-67] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:59:27 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

I am very grateful for the opportunity, to say hello to Jamie, I know that he was called and he had a call on duty, a duty does call, so I understand and I go through them, so hope to see you and see our friends here and I hope I came to their expectations, I honestly feel that I need to reach out to everybody and I really need to reach out with the clarity and absolute honesty that they should deliver to.

[M038-69] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 01:00:21 · J.P. Morgan Thought Leadership Series · 2021-04-12 · مشاهدة عند هذا التوقيت

Thank you.