OIES 32nd Annual Brainstorming

[M040-01] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:00:00 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

You mentioned the detail of your introduction, which is I am very thankful for the kind words that you have placed, the issue of reaching out to an institution that never existed actually, simply because in the old days there was no clarity on the division of labor of what is the contours of what is conceived to be a ministry which represent the government when it comes to the concession of Aramco and also the ministry as a regulator and the so-called old entertainment, which has existed ever since Saudi Aramco was created until recently.

[M040-02] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:00:54 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

which led to a culture where you really cannot distinguish between what is a ministry and what is a regulator and what is a company but that comminglement has finished, I am very grateful for the Custodian of the Two Holy Mosques specifically also Crown Prince Mohammed for allowing me and giving me the chance to undergo the restructuring which was precipitated by ahead of the fact that you became an energy minister. Yes, I was taking the lead role in doing the bylaws, the hydrocarbon law, the concession agreement, the new concession agreement, the even the bylaws of the company itself. .

[M040-03] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:01:53 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

I have some of the team members here, who worked with me on this, but truly being believer of this division of labor, I think the real execution of that happens truly when I became an energy minister, it is something that I lived with and it is a dream that became a reality, but as the reality falls on you, it is like when you get something out of your wishlist to happen and then you realize that as it happens, actually good amount of work needs to be done to make sure that what you were learning for happens, but happens properly and more important and more challenging is that it should continue.

[M040-04] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:02:53 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

Because of that and because of what you just also said about if I can borrow head and shoulder advertisement with a new and improved shampoo, now we have a new and improved energy ministry because to me, this is the only main pillar for bringing this sustainability of this new regime if you could call it a new ecosystem, it would have to depend on, yes maybe for our time, the old-timers of me and my alikes, but more important is to recruit young, ambitious and committed cadets that had had the benefit of serious education and once you get a cadet be it a young man or a young lady who went through the tedious and tough education of serious universities, you should take it as a good prelude for their desire to be achievers, their desire to be accomplishers, and their desire also to put their education to a good reward for themselves now and for their own future families.

[M040-05] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:04:32 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

So Bassam, allow me to intrude into the disciplines, the etiquettes and the protocols of your series and just permit me as a friend and allow me to privilege, actually the pleasure and the privilege and the honor of introducing to you and your good audience the true energy of Saudi Arabia and the true energizers of Saudi Arabia, so I will just push a button and you will see it in your screen something different that you have not seen in Saudi Arabia for quite some time and I will allow Whatever you will see to speak for 5 seconds, 7 seconds each to introduce themselves, so if ypu allow me, can you permit me to do that, Bassam?

[M040-07] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:05:49 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

This is the new improved energy ministry and Saudi Arabia per se, Mind you, whoever you see today represent a fraction of the new ministry, quite a few ladies are not present because we were working hard in making sure that this ministry become the model for an emancipated institution, So, if ypu allow go ahead.

[M040-08] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:12:56 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

I hope I did not bore you with that.

[M040-10] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:13:20 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

I wish that all of our audience can privilege us with a visit, they will see hundreds and hundreds of young, as I said, bright, ambitious and looking forward for a better future. In fact, they are responsible now to make their own future.

[M040-12] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:14:37 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

Well, I think the lesson learned is that in the scope of I would argue ever since the 23rd, 24th of January, when I first put out a statement just after Davos, it was on a Sunday evening, warning people of the potential of the Corona Virus and how much of an impact it may hold for all of us, Obviously I got it wrong in terms of escape, but certainly I had my early warnings and you may recall, Bassam also that in February during an IEF Meeting, although it was Chatham House rules and what have you, but I did say something which has to do with, people have choices when they see fires at their homes. Do they use the garden hose or they call the fire brigade? and my view still is my view in everything human taking proactive action is way much better and less costly than having to try to deal with things after the fact.

[M040-13] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:16:01 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

So I think the back and forth went on for a longer period and what people should have been doing, which is to try to mitigate in advance this situation, in retrospect, I would say that even with all what happened in February, even in March, and the failure of that meeting in March, I do not think that anybody in his right mind would have even predicted even that the demand collapse that we have seen in April, be it as it may in retrospect, even if OPEC Plus agreed to that cut of 1.5 million which would probably would have prevented us from going free for all, as it has been the case after the failure of that March meeting, because we never had an agreement then after that meeting, even arguably whatever we have introduced as an additional production than others that would have not to turn demand to maybe 3 to 3.5 million.

[M040-14] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:17:19 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

So even if you cluster it, the 3.5 million plus the 1.5 million that we were supposed to cut, it becomes a drop in a bucket considering what happened to demand in April, It would have made our life easier. Yes, it would may have may impacted the market little bit less, but the jury is still out, I do not know how much we could have mitigated if we had taken that decision in the 6th of March.

[M040-15] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:17:51 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

My guts and I do not know who could model that, but my guts feeling it would be probably an improvement of the market by 5, 6, 7 dollars at best, but again, it would not have solved the problem, what helped, I think, to crystallize the importance of discipline and the fact that all markets need to be regulated with what happened in April, in retrospect, ex post facto, I would argue that what happened in April was a good thing and was a healthy thing, because you may recall I did say after the OPEC Plus two meetings plus the G20 meeting that was held to attend to the situation.

[M040-16] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:18:45 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

I did use that platform to promote the idea that, like all markets, energy markets need regulating and without regulating, this is what you end up with, If we did not have the discipline of OPEC Plus as a discipline, if we did not have the G20 to come for the next day and to agree to do something and to attend to this situation, so as others when it comes to attending to COVID, so also the health, the central banks, the ministers of finance, everybody had to collaborate to work with attending to this situation.

[M040-17] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:19:35 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

So I think the biggest to answer you. Yes, I think fundamentally people realize the importance of working together and the importance of committing to what they agree to, that sense of urgency was amplified by how much low the market went, as low as to the floor and I guess now what is helping people to continue is that people realize the importance of discipline and how much rewarding discipline can be.

[M040-18] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:20:15 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

As you know, I am not especially gifted, although I talked to our guys at that so-called artificial intelligence Yehia and his team, I keep telling them, you know, I have got my own remote sensors, it is the 34 years of experience that made me ouch so many times and these type of remote sensors that really make me do this and do not do that, so what you saw after the agreement is nothing more than the lessons learned that have accumulated over the last 34 years, which is you never leave OPEC Plus without the discipline, you need to make sure that the market is attended to and the psychology of the market need to be improved.

[M040-19] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:21:15 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

Fundamentally, I believe in one thing which my good old man Robert Malborough got into my head, work on expectations instead of physical, expectations is much more important than anything else, so if you are involved in, if you can call it, attending to markets, you should attend to the expectations of the market and if you want to discipline the expectation of the market, you need to demonstrate that you have that oversight, that is why we came up with the monthly meeting, that is why we came up with the tweaking of the 500 upward or downward for stay put.

[M040-20] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:22:07 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

I do not like to cause pains, but I do not like the market to take us for granted or the speculators to take us for granted or the media to take us for granted, so you have to keep lots of rabbits not on your hats, we do not wear hats here, we wear kofia or tagia, so that is why I like to keep so many rabbits underneath my taiga and I pull one every now and then just to make sure that people take it seriously, that it is prohibitive to try to predict what OPEC Plus may do, that helps the market actually does not hurt it, when you become unpredictable like my good old man, Alan Greenspan, you become much more in command of this situation.

[M040-22] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:23:27 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

You know, there is there is this British element of me, so when I was talking in that press conference, somehow I do not know what got that word out of my mouth, but to my even my colleagues here they said, pardon? What is this? So as I am sure our friends from the U.S. or others, it would be too pure British, if you could call it, to understand it.

[M040-24] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:24:21 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

There is a quick answer for that, during the end first week of April 2020, I did send a letter to Aramco instructing them to increase our production capacity to 13 million, it was just one week before that crazy day of negative pricing and what that tells is talks about our conviction that if people believe what is being said, then we will run out of capacity and if the world run out of capacity, we will run out of economy because the economy will not be energized.

[M040-25] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:25:18 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

I have seen them coming, I have seen them going and I have seen peak oil, peak supply and peak demand, but I know for certain that with all what we see, people talk about peaking by 2040, today the IEA had issued a report, which I would probably attribute it as a good, nice sequel to La La Land movie, because it talks about the peak of to 2030, I would believe it when I see it, but what I know for certain is that Saudi Arabia is the lowest cost producer and it would be our privilege to continue producing and our privilege to continue introducing more production capacity when the prevailing situation allowed for this to happen.

[M040-26] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:26:28 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

you have heard some of our colleagues here and my friends here, new and improved friends, we have a program called Sustainability Program, which is quite challenging, I would urge some of you and our audience here, if you wish, we can give you a full day on what we are doing with that, which is to try to generate more demand, that is to skip the idea of being grossly reliant on the conventional existing markets and existing patterns of consumption and move away from that to look at hydrocarbons as materials and use them and create and generate new demand.

[M040-27] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:27:20 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

This is something I have worked very hard on before I even became a minister, I remember Bassam, I think you were or Oxford Center was involved in it in some way or another, but it is not just Oxford, at least 50 respectable institutions that were involved with this, we will carry on but one of the more important things that people need to realize is that Saudi Arabia is no longer an oil country or a gas country, Saudi Arabia is an energy producing country.

[M040-29] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:28:22 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

Well, it depends because you do not want to carry a massive amount of excess capacity when the world does not need it and this is the problem of the so-called signals that you get, what the signals you are getting today is that people should produce as much as they can and move without being very worried about security of supply. Ironically, the IEA also issued just a week or ten days ago, another report talking about security of supply issue when it comes to rare metals and material metals that are used for renewables, and again, you have a serious issue when it comes to security of supply, when you become much more reliant on 4 or 5 or 6 countries where they have most of those materials.

[M040-30] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:29:40 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

So in your endeavor to try to mitigate security of supply and emission and what have you, you are also doubling on your challenge by looking at what would happen to the world if they become more reliant on these rare metals, and how one can overcome the idea of the concentration of the availability of these metals on certain countries and more important, can it happen? we have a very serious renewable program in Saudi Arabia and we have a very serious ambition for being probably the most lavish producer of hydrogen, so we have a good idea of what it takes to have that big ambition and if you want to localize it, which we want to do, we also know how challenging these things, if you take it all the way to a complete localization point of view.

[M040-31] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:30:48 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

So I just find it a little bit worrying that people would wake up in the morning and try to imagine a world that they are about to see, but they would not have the means or the abilities or the technologies or even the materials to get you there, so what we have today is an invitation not to invest in excess capacity, but used capacity and by the way, it is so easily can be mitigated, you could create artificial excess capacity by storing somewhere here and there and you could say, I will have 3 to 4 months of excess capacity of about a 1 million, 1.5 million or 2 million or whatever it is and you could allocate it actually or locate it at marketplaces where you have much of your consumption would be, but certainly we are investing to produce because we want to link it to our sustainability program to make sure that we do not want to be even overly reliant on conventional markets.

[M040-33] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:32:44 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

I have been consistently even in this grossing year of 2020, as you know we have been accused of bringing all of this calamitous situation in April 2020 as a way to try to derail or Shell oil and what have you, we have quite a good history to demonstrate that was not in our radar at all, my comment was more to do with the business model that was used. we certainly welcomed Shell Technologies because we are going to be using it for Jafurah

[M040-34] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:33:34 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

which is a huge gas basin which is going to be a big and important integral of our energy mix, this is one of the most enabling bases that we will rely on in producing blue hydrogen, in improving our displacement program from liquid to gas and renewables, and I think it is so prolific in liquids, so it will provide us with a adequate amount of ethane and other liquids, which we will be using it in our sustainability program also as another part of the feed, which is TOCS plus NGLS and what have you and ethane.

[M040-35] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:34:37 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

And therefore I just had an issue with the business model, you can see it clearly and I am sure that some of our audience are either involved in Shell oil or some way or another, they would say yes correctly. In fact, there were public statements by the who is who in that regard, be it Occidental, be it Pioneer, be it Chevron, be it Exxon, they all said that the business model need to be reformed, so if you reform the business model to one of a replica of what is known for the industry, which is, yes, you have to grow, you have to produce, but you have to pay dividends and manage your debts in a better way, if that happens, then this is the transformation that I was talking about, which is avoiding drill, baby drill, which is a good thematic thing but look at what happened, $200 billion of box were taken away.

[M040-37] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:36:22 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

am willing to sit with my team for hours to explain to everybody that actually energy transition will be more beneficiary for Saudi Arabia than any other country in the planet Earth for very simple reason, just look at what we are doing with our renewable program, we are scoring last the project that was providing us with the cheapest electricity that one can produce from any source of renewable

[M040-38] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:37:07 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

we have a case to show that our liquid displacement program will prevent us from burning by a million barrels of liquids in the form of crude or fuel oil, in fact to add insult to injury, 250,000 barrels of those liquids are imported fuel oil, so if we can take that out and replace it with gas, which we have it, and move it to renewable which by the way, we made the case publicly that not only we have it, actually we are the cheapest, I take great pleasure of the fact that we are the cheapest producer of electricity from renewable.

[M040-39] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:38:05 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

so unfortunately, to the other does not like that idea, well, here we go again, Saudi Arabia is the most competitive, renewable producing country when it comes to renewable, adding more, hopefully to the benefit of the whole world is that we are going to be also the most by default competitive hydrogen producer in planet Earth. Why? Because if we have the cheapest source of energy, which is the renewable, electricity coming from renewable plus we have an advanced

[M040-40] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:38:56 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

No country in planet Earth has a history and an experience in desalination than us, If you co-mingle the two, you will have green hydrogen, when it comes to gas, we are also a good blue producers of hydrogen, when it comes to efficiency, we have been running an exciting efficiency program which can clearly become a model for many of the developing countries that are embarking on any efficiency program, but now we are in after 10 years, we are in quite an advanced stage and we will be pursuing it again, there is a benefit to that.

[M040-41] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:39:48 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

my point is that if we go for the energy mix that we are targeting, we are going to be saving a million barrels of liquids that we could export, the total cost of the program is about roughly 15 16, 17 billion dollars, the benefit of that by saving these barrels and exporting it at a price that is international not domestic, It tends amount to about $140 billion over the period to the 10,000 2020-2030 with this gradual phased in accumulation, It gets even better, if you look at 2020-2040, so we have actually a good economic case to pursue these things. When it comes to hydrogen, amen we will be the cheapest producer of hydrogen and if Europe would like to have Green Saudi hydrogen, we can pipe it.

[M040-43] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:41:32 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

No, because unfortunately we are sitting on 23% of our gas capacity unutilized today as we speak and the problem and the reason and I do not mind sharing it because, again, it is something that i take a great deal of pleasure, thanks to the team I have, we now look at this whole thing as a state, the original problem that we had it is the impeachment between the government and the state and the company and the embodiment of the chairman of the board being the Minister of Energy or Minister of Oil and Gas and then Minister of Energy.

[M040-44] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:42:18 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

When you separate, you begin to look at the whole thing as a government and when we look at it as a government, whole economic scheme differs, For Aramco per say, expanding the master gas system would not have been rewarding and they would decline from doing it, so what it took is a good one month work to realize that we could expand the master gas system at the cost of the government, which will be owned by the government, it is like a trunk line thing and as we created that, we fixed the pricing for what we call it equalization of how much Aramco is charging the government for gas vis-a-vis, how much it is sold domestically, where the government will carry the brunt of that.

[M040-45] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:43:17 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

that tweaking is the enabler it to expand and enlarge the master gas system, is the enabler that will enable us to reap these benefits that I was mentioning while ago, so it is $8,000,000,000 project, just the master gas system with shrubs that goes in different areas, also in the midlands of the country, in the southern part of the country, all the way together and by that, you will convert many of these power plants or desalination plant, in the desalination plant for example, we are going RO because they would not need fuel, they would not need gas, they would not need liquids, they would not need anything but electricity and again, sorry to say, but I had to disappoint some, but we are the cheapest producer of electricity from renewable and there is one other spill effect that I did mention, which is emissions and emission reductions. I do not want to take away the steam from an event that we will be holding, the Crown Prince will be holding on the Green Saudi Arabia initiative, but you will hear numbers of emission reductions that will be mind boggling.

[M040-47] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:45:37 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

Well, you did not see us withdrawing from any agreement ever since climate change was ever discussed, we were the first to come in and we will be the last to hit the door, not only we were assigned to Paris Agreement, we were taking a very proactive role in signing up to that Paris agreement and because of that, we were one of the few first rectifiers of that Paris agreement and we still believe that Paris agreement was yes well-negotiated.

[M040-48] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:46:18 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

it really represents a fair and an acceptable way forward, it took care of the nuance of who should take the lead, and it gave people the ability to commit subject to natural circumstances, it allowed for those who were the first of pollute to take a more leading role, a more exemplary role and even whether we were a obstructionists or what have you, that is fine when you look to yourself and ask yourself as a person, if you make a personal pledge, you have to honor it, so if you want to honor your pledges, you have to make sure that you can deliver these pledges.

[M040-49] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:47:18 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

It is not about a PR stunt here or there, it is about pledges and commitments that will be carried forward by you and others who would come after you leave and then you ask yourself the question, Is it fair that I commit the generations to come? On something that I would know maybe now I would never be able to fulfill and this is the concern we had then, but when it comes to our commitment to the Paris agreement, absolutely, emphatically we will deliver to the later, that is why we engaged ourselves in this net zero forum.

[M040-50] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:48:08 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

But the net zero forum that we sign up to which talks about practical solutions and strategies, it talks about mindful of natural circumstances, it did not spell out a calendar year for when that to be achieved and it talks about specific technologies, which I think the whole world now is congregating around, which is circular carbon economy and the 4 R's, we have delivered on in terms of methane reduction and methane emissions. In fact, we went to brag to the world that take us as an example of how a big producer of oil and gas had kept its emissions so low and upstream all the way to export our e-methane emissions stand tall before many countries, including many of the more relevant and important producers.

[M040-51] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:49:20 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

I would argue even the US and I would argue even the North Sea, so what is wrong of committing ourselves to what we know that we can deliver, so long as our natural circumstances will be taking into account our commitments and pledges as non-Annex 1 countries would be considered the circular carbon economy and many of our audience know that we spent a full year trying to make sure that it gets to be endorsed and wherelse, but to get to be endorsed by the G20 and also there is another forbearing issue which was recognized when we put together that language agreed on the creation of the net zero forum is that some help and support needed to allow these countries like ours to move gradually and phase in our ability to diversify our economy and subsequently diversify our revenues from hydrocarbons?

[M040-53] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:50:52 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

23 minutes.

[M040-55] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:51:26 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

If it happens, I know our friends from J.P. Morgan would be unhappy with me, but I have always consistently said either or of the two extremes or I will believe it when I see it, even if you ask me about what will happen next month, I would say, well, let me see until we move to June and I will probably have an idea, even in today's environment, you really do not know, what I know of today as we speak is that investment is not coming as they were before COVID 19.

[M040-56] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:52:10 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

Now, I know that also we have more than 6 million barrels of excess capacity today as we speak because the 5.8 that OPEC after the 800, that may or may not come, you are not going to catch something from me here, that may or may not come in July, even if that happens in July or anywhere time or any place, but even if that happens, you still have a 5.8 million of reduction of productions, you have to add to that another 1.3 from our end to bring us through the 12.3 because our base on that agreement was 11.

[M040-57] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:53:09 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

You have to induce another 400 or 500 from the UAE, so you are talking about we bordering now 8 million and then you have to talk about Iran and what Iran could induce and let us say for the for the purpose of argument, that is another million, so you talk about the 9 million barrels of excess capacity without mentioning Venezuela, but even if you went to indulge yourself in Venezuela, you will have another 500 or so.

[M040-58] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:53:53 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

So you have that in the book and you have a demand, that trajectory that still the jury is still out about it, what you need to be assured of is that people who think that and I like the line that some of the oil companies, the responsible oil companies, especially some of them that are involved in Shell are saying let us see what will happen to this excess capacity, which is a prudent point of view, they are mindful and watchful of the 9 million what will happen to it, and overspending and overinvesting now, Should bring again the demise of this stability of the current market, so whether it would lead to a cycle or super cycle or not, I am not sure, what I want to make sure of is that I am after sustainability of stability, That is my course.

[M040-60] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:55:41 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

Well, we have had an experience before twice, I would argue no. see that is the problem of being a bit old, I have seen it happening in 1988 and with Iraq and Iran, I have seen it happening, then later on, twice, the last of which was 2006 or 2016 or 2018 and then the reversal that happened, but in all cases not only with Iran, with others, also with Iraq we went through that phase with Venezuela, we went through to that phase, with Libya we went through that phase twice, we have always said you had a quota at one point and as long as you can produce all the way to that quota, we would not be mindful of what you do.

[M040-61] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:56:42 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

Now, the jury is still out again, that tells you how much a good amount of sleep that I do sleep, is how much is Iran is producing, only God knows and there are quite a few veterans that will be a claimant of holding the truth and have their fountain of knowledge, but arguably I would say I do not know, so if we do not know how much Iran is producing and consuming domestically and therefore how much it is exporting and what it is. Is it crude? Is it crude on product? Is it condensate? That is again, it is an issue that nobody has a rocket science to deliver us with specific number, given the fact that it is done and produced or marketed in approaches that are shrouded with the with the mystery, to say the least, but the fact also, which is make it more cumbersome. Has the industry been affected over the last three years and with what happened to COVID? Would they be able to return back to the 3.8 that they had before? I do not know, what we know is that whenever that sanction is lifted that keep them come in and let us see what they will do, we are very comfortable that we will deal with it like what we did.

[M040-63] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:59:06 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

you are wishing me a longevity of my life line.

[M040-65] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:59:13 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

I am very grateful. but let us hope that they can stay put until 2040.

[M040-67] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:59:31 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

Very easy, we would like to make sure that our 50% of our total sector would be the new, Over 50% would be gas, I would like to see ourselves exporting electricity also to the neighboring countries, I would like to see ourselves exporting hydrogen, blue and green and gray and I have next to me, some ladies here, so they are suggesting that we can do pink and purple just to make sure that we do it in a nice feminist way.

[M040-68] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 01:00:13 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

but I see ourselves leading model in terms of doing all of the above when it comes also to efficiency, I see ourselves engage seriously on the circular carbon economy and achieving a remarkable lead and all the 4R's are just one R or 2R's or 3R's, no the 4R's, the green initiative of Saudi Arabia also does talk a lot about greening and attending to the huge initiative of this 10 billion trees over so many years will also be helpful, so we are working on things and this is very crucial and very important, I also believe that our sustainability program will be moving forward, I know Fahad and his team are putting good hours on making sure that if the world would like to transform from using hydrocarbons as a mean to transport and as other means of making use of it.

[M040-69] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 01:01:35 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

We have the capability and working with others, we will have the competence and the technologies to ensure these hydrocarbons will not go to in waste, they will be utilized heavily in an environmentally sound way with full consciousness of the full cycle, ensuring that it would be any environmental concerns will be mitigated and again, we would like to take that lead from everybody, because if we take the lead, we actually capture more of that market, this is where we are, we are also want to make sure that we advance our situation with a much more focus on localization of content because it will help us to diversify our economy and to continue that lead on some of these technologies.

[M040-71] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 01:02:42 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

just to name few.

[M040-73] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 01:02:58 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

if you have an additional question, I will go for it

[M040-75] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 01:03:14 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

: No, we would rather use our gas either domestically or convert it as a hydrogen.

[M040-77] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 01:03:31 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

Again, we will be people in making sure that it will be Saudi hydrogen, that will be tanking your car in the future , Bassam or our friends' cars. Unfortunately, just live with the fact that you are going to be energized by Saudi Arabia when one way or another.

[M040-79] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 01:04:30 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

Well, can you allow me one minute?

[M040-81] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 01:04:37 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

to your good audience regrettably, this is me, I am more of a Jack Nichloson remember that movie, it is that think as good as it gets this is me as good as or as bad as it gets, there is nothing that make me honor where I am now, But two things the trust I was bestowed with and the team that you just saw and the tens and tens of others that you do not see now, but I assure you, if you make that sitting with me next year, we will have to do it in one of that big conference room of KAPSARC or what have you, one that hold up to 3000 or 4000 because this is the kind of people that you will see running this place, and in fact, they do run me, because some of them are so incredibly competent to say, well you belong to the old past history andwe went to get hold of our destiny, so it is either you lead or leave, let us move and that is exactly what I do, I just make sure that I become a facilitator as opposed to an obstructionist of what they want to achieve.

[M040-83] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 01:06:30 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

I am also inviting to your audience whoever find our work here is exciting and when to join us, Please call me directly not through Bassam.

[M040-85] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 01:06:52 · OIES 32nd Annual Brainstorming · 2021-05-18 · مشاهدة عند هذا التوقيت

Thank you.