REW 2021 - The Future of Traditional Energy

[M064-02] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:10:05 · REW 2021 - The Future of Traditional Energy · 2021-10-14 · مشاهدة عند هذا التوقيت

Well, they are not well below, thay are below, but usually by end of the year, and actually by end of this year, we would be a balanced stocks. We keep telling people we should look way beyond the tip of our noise because if you do and take 2022 into account, you will end up in 2022 with a huge amount of over stocks, this is the arithmetics that we have, not ours, not OPEC alone, we rely on 8 different sources and if you look at their numbers with all the 400s that we will be doing, and by the way, you know, I keep telling people we are increasing production; we will be increasing production in November by 400, then if you add the other 400 in December, it will be 800, then if you add the 400 in January, it will be 1.2 million, and then if you add the 400 in February, it will be 1.6 million an average, and within the next four months, the average of which would be about a million of OPEC Plus production.

[M064-03] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:11:31 · REW 2021 - The Future of Traditional Energy · 2021-10-14 · مشاهدة عند هذا التوقيت

We have that agreement, we struck that agreement because we believe it will create a balance by this end of the year, and it would be a bit of a challenging year, for us on 2022, but we want to make sure that we reduce these access capacities that we have developed as a result of COVID and the consequences of COVID, we want to do it in a graduate phased-in approach, and we believe we will have a challenging year on 2022, if we do not attend to the situation remarkably with the same resolution. I am glad that yesterday I missed it because it would have been an occasion not to miss, president Putin talking about the comparison of how, and my dearest and nearest friend Alexander had talked about what we did as an OPEC Plus to be attentive to this mark. We have spoken a lot as OPEC Plus that energy markets need attendance and need collaborative work to ensure that whatever we do, will address two main issues, ensuring energy security,

[M064-05] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:13:24 · REW 2021 - The Future of Traditional Energy · 2021-10-14 · مشاهدة عند هذا التوقيت

We want to make sure that we attend to the market and which we have done; you took an extreme price and extreme situation during April, but let us not forget that we lost 25% of the total demand of oil, and to come from that end, with the extreme to where we are today, mind you, what you see today is only an aberration of what is been happening in other sources of energy, which is gas as Alexander was saying, gas, NGLs and coal. You know, we are talking about the situation existing today that has to do with the entire energy ecosystem is being, to be honest, hijacked by lplan policies and lplan approaches to how people need to conduct themselves in assuring that the world economy is well supplied with the diversity of sources of energy.

[M064-06] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:14:38 · REW 2021 - The Future of Traditional Energy · 2021-10-14 · مشاهدة عند هذا التوقيت

Yes, and people need to address it with the concern that while we are to try to address energy security, we also should be mindful of the challenges and the mitigation of a more important issue also, which is climate change. But we believe solidly as OPEC Plus that our job is to ensure the energy security when it comes to oil, but it takes a diversity of sources of energy to enable us to do that. Yet, we could also work with the other challenge, which is climate change, and clearly, this whole thing should not be more or less a zero-sum game. I think there are ways forward solutions forward that enable us to address both, but address both comprehensively. What we see in the oil market today is a merely incremental increase of 29% vis-a-vis 500% increases in gas prices vis-a-vis 300% increases in coal prices vis-a-vis 200% increases surprises in NGLs; if these markets, if these industries were attended to as what we have done remarkably in OPEC Plus, and clearly we have a lot to congratulate our self with the three of us here, four of us, along with other colleagues, we have done a remarkable job of being the so-called regulator of energy market; gas markets, coal market, other sources of energy sources needs a regulator. If this situation is telling us that people need to copy and paste what OPEC have been done and what OPEC plus have achieved.

[M064-09] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:20:29 · REW 2021 - The Future of Traditional Energy · 2021-10-14 · مشاهدة عند هذا التوقيت

But it is not about making anybody’s day; it is about finding a solution, a remedy to the root cause of the issues, the root cause of the issues today, as we sit here trying to congregate and figure out what we need to do, is what is happening to gas markets, what is happening to coal markets? If these two markets, what is happening in NGL markets, if these three markets were attended to properly, like what we have done with oil markets, we will not be here talking about a potential of a serious energy crisis this winter. Now, if you look at the remedies, if you look at the root cause you will see a lack of stocks because somebody decided not to buy and not to store, lack of investment, because the signals in the market do not invest in fossil fuel and in hydrocarbons, and actually lack of coordination amongst people, buyers and sellers, and complete faith in so-called free markets and spot markets that will bring about a closure of these problems.

[M064-10] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:22:00 · REW 2021 - The Future of Traditional Energy · 2021-10-14 · مشاهدة عند هذا التوقيت

The fact of the matter today, as we speak, is that free markets, spot markets did not deliver an efficient market because it may have developed an efficient market here and there, but they did not develop or create a stable market. What we care about in OPEC Plus, you never heard any of us here talking about prices or price target, or achievable price regime. We have been talking about sustainability and stability of markets, sustainability and stability of markets does not happen haphazardly; it has to happen through and cooperative activities that are not foreign from what we have seen in the financial markets and central bankers and if we really want to bring a remedy, you have to go to the root cause of the issues. The gas market needs to be properly regulated by an effective, meaningful tools that do not become too intrusive as being gouging but also coal markets need to be, and a more proper clearer signals about what will be demand in the future and how much the industry will be enabled to attend to that, and more focus on the transition of where we are today and what we want to be into 2050, or what have you, because people are jumpstarting their ambition; they are not looking at today’s that we are in 2021, they are almost living in 2050, but we are without the word widths or the clarity of where we would start from here today and how we can end up attending to what we were aspiring in 2050.

[M064-12] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:56:34 · REW 2021 - The Future of Traditional Energy · 2021-10-14 · مشاهدة عند هذا التوقيت

Well, there is always that residual charity starts at home, we have seen it in vaccines, charity do start at home too. In our endeavor, as Saudi Arabia, we are moving ahead with transforming our energy mix, we are beginning good at gas, because you know, we have a good story to talk about when it comes to gas and capturing methane. Saudi Arabia has a record of being the example country, and with Aramco being the example company, that dealt well with methane emissions, there is no company on planet earth that can beat the record of Saudi Arabia, of Aramco, when it comes to methane capturing, we did a great job with, because we captured all of these gases, we converted our use in the 70s, we used it for creating electricity, for powering our designation plants for using it as a good chemical resource.

[M064-13] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:57:57 · REW 2021 - The Future of Traditional Energy · 2021-10-14 · مشاهدة عند هذا التوقيت

That is why we have created two huge industrial cities called Al-Jubail and Yanbu and in that endeavor, we went own from using associated gas and we went moved naturally to independent gas, and now we have moved to even better, which is shale gas and shale gas will achieve us 50% of our entire power sector will be converted into gas, 50% will be on renewable. I have to remind people that Saudi Arabia is the holder of a record when it comes to producing electricity from renewable, we are willing to compete with everybody in that endeavor because we are using everybody. We are using everybody in terms of AQUA, MASDAR, ADF, all of the above in our approach, we are getting to reduce our emissions.

[M064-14] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:59:05 · REW 2021 - The Future of Traditional Energy · 2021-10-14 · مشاهدة عند هذا التوقيت

There is a value to be open for the idea of you need to be an energy user or an energy producer. If you are to be an energy user, because you want to enhance the well being of your economy, enhance the growth of your economy, you should not be biased about a choice here or there; and if you are concerned about your energy security, and also you are into concerned about climate change, there is a room that you could use, all sorts of energy with all the necessary mitigations, and you end up with an energy mix that delivers you. That is what we are trying to showcase for everybody, that we will become by 2030, the examplary producer of all types of sources of energy, we will be the most efficient, the most effective and better icing it, we will be reducing our missions by numbers that will be staggering, to say the least, and you will hear it on the 23rd and 24th and 25th, when his crown prince Muhammad will announce what we can do and what we can achieve because we have a history of being an achiever.

[M064-15] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 01:10:48 · REW 2021 - The Future of Traditional Energy · 2021-10-14 · مشاهدة عند هذا التوقيت

As Bob was saying and everybody was saying, I think if I may just give a bit of a highlight of what we have been talking about. These issues cannot be discussed in a compartmentalized way, these are ecosystem issues; the whole thing, when it comes to energy markets, need to be reviewed, the quest of achieving energy security, sustainability, stability of markets, and sustainability of markets along with attending to climate change. It can never be addressed in compartmentalized way, it cannot be done through a favorable choice here and a favourable choice there, it all options should be looked at. We have proposed and continue to proposing circle carbon economy as a means amongst many. We believe that technology is the aggregator of everybody’s effort being government, research Institute, companies and therefore, I would really truly believe that we have an outfit called the IEF is situated to carry on that dialogue.

[M064-16] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 01:11:14 · REW 2021 - The Future of Traditional Energy · 2021-10-14 · مشاهدة عند هذا التوقيت

So, if people can come in our forthcoming event and congregate with an open mind and an open heart, congregating on the two issues, how can we achieve both; energy security and attending to this crucial and important issue with regard to climate change, and we should never exclude any meaningful option or solution that could be adapted, but with an open mind, with an open heart without being secluding here or a clue there or cherry picking based on favorable, resonating, messaging as opposed to looking at a real solution that can deliver us sustainable growth of our economies, the world economy, we have to attend to another issue; energy poverty. Let us not forget there are billions of people that are suffering from the so-called energy poverty, so affordable, efficient, and clean energy is a must for this part of the world and these countries and these huge 3 billion people to grow and prosper.

[M064-17] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 01:13:45 · REW 2021 - The Future of Traditional Energy · 2021-10-14 · مشاهدة عند هذا التوقيت

Without that, I do not think they will grow, I do not think they will have their computers, I do not think they will have clean fuel to use instead of biomass and I do not think we will create or generate more economic, global economic growth that would keep everyone sustained in terms of how we see the world. Biomass is being used in an ugly, terrible way, there are people that are not dying from climate change, but there are people that are dying from suffocating by breathing CO2 in a locked places. These are the real issues and I would offer that in the forthcoming IEF, that people can congregate but without any biases or any predetermined choices and let us look at the most efficient, plausible choices, inclusive of every solution that can be bring us all together at attending to this endeavors.

[M064-18] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 01:21:33 · REW 2021 - The Future of Traditional Energy · 2021-10-14 · مشاهدة عند هذا التوقيت

Just to highlight how the world is being transformed; here we are, Saudi Arabia we are engaged pioneering hydrogen, both. In our case, we are doing the both, but we are putting our money where our mouths are. We already are putting money on green hydrogen, as you know we are already with also our friends here in UAE are putting money when it comes to blue hydrogen, we have already exported some hydrogen to Japan, my friend from Azerbaijan he knows and I know which company he is talking to and amazingly it is a Saudi company it is called AQUA, who is working with others to be the pioneers when it comes to green hydrogen. Is not that something to say that we are becoming an energy country and not the only an oil and gas country.

[M064-19] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:22:45 · REW 2021 - The Future of Traditional Energy · 2021-10-14 · مشاهدة عند هذا التوقيت

On that note, thank you very much for that, we have to bring this panel discussion to a close, the deputy prime minister has reminded me more than a couple of times that our time is limited, and we are going to have another discussion with the deputy prime minister beginning what in 40, I was doing in an hour. I did not wear a watch up on stage, which is never a good idea, but we are going to be back here in a short while. So please join me in thanking our speakers today for their Frank discussion, This is of what is obviouslya quite controversial issue, both in terms of the current energy crisis, but also the transition to a greener economy, and I see that the army of journalists is approaching quickly. So I will stop talking now, thank you very much.