India Energy Forum - Ceraweek by IHS Markit

[M067-02] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:00:20 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

Well, it is always a pleasure to be with you Dan, but this time is different and permit me to say even more important, because I will be reaching out to solid good friends and partners.

[M067-04] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:00:59 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

Well, there is always a chance for a first, but you are better than me as a historian, I do not think we have seen a crisis as similar as this, but indeed I think what we have today is people are not focusing on the real cause of the issue, that they are either trying to hide away or cover their eyes from attending to real core issues or they are trying to pretend that it is not existing and it is existing, you have low investments in many of the sources of fossil or hydrocarbon, you have low investments in the infrastructure, you have a perceived deliberate reduction of stocks because of these resources resulting from wanting to reduce cash flow issues and not to impact cash flow issues.

[M067-05] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:02:05 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

All of these congregated into an all of a sudden perception that we will have a severe cold, which may happen and may not happen, and the prelude with it were hurricanes and what have you, which disrupted some good amount of resources such as refining, such as production of crude, gas and what have you, more also so lack of anticipation that the world would grow as fast as it is doing now, lack of the adjustment to the approach, given the fact that growth has been happening, not just it was not a month or two, it ever since the beginning of the year and the word became more and more assured that economic growth will continue, and as these lockdowns and what have you, and as the spread of vaccination, and as mobility start to emerge precipitously.

[M067-06] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:03:10 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

People only all of a sudden woke up to the reality that they are running out of investment, running out of stocks. I would say even creativity and trying to be attending to real solutions that address real issues and go straight to the core issues, and as you see the whole energy sector is in a situation now, that is why a few days ago, I did suggest that people need to copy and paste what we did in OPEC Plus, and if people can congregate around what they could do with gas both NGLS and even transported gas by pipelines and what have you, and also with coal and also, I believe serious issues need to be done to enable investors to continue investing.

[M067-07] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:04:20 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

And that has to emerge from a reality, and that reality has to fall down in the most real way that people, the whole world, will still require fossil fuel, hydrocarbons and all of the above, and I think we could do that with also a determination to congregate around, we must also combat climate change and mitigate all emissions, all sectors, all greenhouse gases, that would be a meaningful way of even being inclusive. All in all, I think the world still need serious attendance to the issue of energy security, and also need a serious attendance to the serious concern of climate change, and I sincerely believe that we should not compromise one for the other, I think the attendants should be hand in hand without the necessity at all of compromising one for the purpose of achieving the latter.

[M067-09] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:05:58 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

As I said, I think pure realism has to fall down gracefully where People need to rethink what they could achieve today, and tomorrow, and next month, and next year, and the ambition of whatever their ambitions to achieve be it 2030 or 2050. Clearly, there was a time few months ago which people got hyped with the idea that they can achieve the ambition of 2050, yesterday or today, without taking into account that there is at least 30 years, but more than the 30 years at least so many challenges.

[M067-10] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:06:46 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

Be it across the board technological challenges, resource challenges, human resource challenges, economic challenges, and also governance challenges that people should have been more occupied with, in trying to put together these plans just to ensure that it is deliverable

[M067-12] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:07:25 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

Well, a good chunk of the hypeness today you see, is some sort of probably scaremongering that is happening, so people are in this story that it is almost foregone conclusion that we will have a severe winter. I do respect the weatherman, but if you check to diet yourself, and check what the weatherman will say, and check the weather tomorrow, tomorrow we are not talking about a few months, you will probably have a different..

[M067-14] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:08:07 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

How reliable they are, but this whole think, there is a serious panic, but with almost definitive conclusion that we will have a severe winter, but without the panic, you still have facts on the ground, you still have low stocks in gasoline, you still have low stocks in gas, and you still have a serious bottlenecks on infrastructure and also in cold, and when you get this think, there is always this human think they know the crowding effect kicks in and panic buying picks up, and there are people that benefit from that, and makes great deal of money out of it.

[M067-16] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:09:21 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

You know I personally come from a long history of share responsible government after government of Saudi Arabia. We have always been consistently out there in supporting stability, sustainability, and we have always been the source of stability to oil markets, and we have been the guardian of energy security when it comes to oil, so but in doing what we want to do, we ask ourselves deliberately here what could be an additional contribution to mitigate the situation, and unfortunately, for the first time, we see our role extremely limited. Why? Because the issue is not availability of crude oil.

[M067-17] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:10:16 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

Even if we made it available in tons and tons. Who is was going to burn it? Where are the refineries that were converted? And who is in need of it? And is he in need of crude or is he in need, for example, of gas? Because he can burn it spontaneously and could attend to the weather, Let us not forget Dan, and I am preaching the historian here. In 1979, the G7 and Tokyo took a decision that oil will be disallowed from being used as a source of fueling electricity.

[M067-18] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:10:58 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

So that sector was deliberately by a decision, oil was denied the accessibility to be a source of energy, so the whole world converted to coal, to gas, to nuclear, to all of the above, so even today the jury is still out, but I have never seen a more reliable number than 400,000 to 500,00. probably 600,000 barrels, that if we have a severe cold, and if we have high prices of gas, people may convert from gas to fuel oil or liquid subject to the availability, and that availability the jury is still out, as I said, by my reckoning, it could be 500,00. 600,000.

[M067-20] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:12:01 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

Yeah, it is the dichotomy, and I must say the frustration that I feel and the team I work with feel by why oil is been taken for a ride when the real issues are not being attended to, and you really get that sensation that somebody out there is trying just to drop it on OPEC Plus instead of being responsible and sensible, and go straight to the root cause of the problem.

[M067-22] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:12:46 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

And with another caveat again, if prices of these other sources are high, and if the weather has been projected, it may get severely cold.

[M067-24] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:13:27 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

Well, what we are working together with our friends from India is not going to be a one way street, there is a common interest that India still interested in investing in Saudi Arabia, we are too. The concept of true reciprocity is warranted simply because I cannot a more two countries that are too complementary to each other than India and Saudi Arabia, both compliment, India compliment our aspiration, I believe strongly that we also complement their aspiration, there is a meeting of minds, there is a meeting of even social acceptance, we bond socially even well with our friends from India, we share some common interest, common even culture and history.

[M067-25] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:14:30 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

And let us not forget also that within Saudi Arabia, there is a huge Indian community that have been here for, we are not talking about the 30 years, the 40 years, the 50 years. No. They have been here for hundreds of years in the western province of Saudi Arabia, there is a common, even joint things that we do together, so India and I would have to tell our friend from India, during the poverty years of this land, people took rescue in working in Bombay, There are Saudi prominent families, which I believe some of them are still living in Bombay, Bombay or Mumbai now was a place that people used to go and migrate to, to find a living, and to find a meaningful way of meeting their ends.

[M067-27] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:15:51 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

Well, as I said, we have been moving well with that, we have gone life with the circular carbon economy, and next week you will hear quite a few initiatives that the Crown Prince Mohammed will be outlining, which again, would talk about serious efforts, be it Saudi Arabia proper or an invitation for an international collaboration to pursue further CCE.

[M067-28] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:16:27 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

We believe strongly, and that strong belief comes as I was telling you just before we started then, wholeheartedly we believe that energy security and attending to the most serious and concerning issue of climate change should go hand in hand, and we believe strongly, too, that if we want to achieve the two, and attend to the two as I said earlier, we cannot compromise one for the other, we believe strongly that we could do the both simultaneously without impacting one another, if we want to do that, we cannot go for transition which would lead us instead of going to wind and solar, but a transition that will take us to Gone with the Wind.

[M067-30] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:17:36 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

Another one, so we Cannot go gone with the wind when it comes to energy security in our endeavor, trying to achieve a transition. By the way, none of the two then will happen because when you renew site with energy security, that priority will kick in seriously, and it would make you compromise all of these other transitionary so-called aspiration, simply because the issue of energy security become more dominant, more profound, and the cost of not attending to it will multiply, because there is one thing you could work out for years to continue achieving energy security.

[M067-31] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:18:21 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

It is another when all of these things like we have seen today, that this thing all of a sudden pops up, and your ability to attend to it will be limited, and it will become too awkward to try to put it back years and years of not doing anything or years and years of signaling things to the market, to the industry, that they should not do this and that, and then you flip flop and you try to catch up, you know better than me Dan, there are nothing called upstream oil and gas or coal that would not take no less than 7 years to happen, there is no refinery that could be built less than 5 years, there is no pipeline in the world would be built in 2, 3 years, there is no receiving ends in any port in planet Earth to receive liquid gas that would not take 3, 4 years.

[M067-32] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:19:18 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

These are serious issues, and need to be attended to, and we as people need to come out of the closet by saying we want to go, we want to transit to different energy mix, but we have to live with these facts until we attend to them, we are offering and we are celebrating our endeavor today, and we will do it next week that we will do both, we will be attending to our energy security, we will be achieving a better energy mix, and we will show the world how it can be done that Saudi Arabia, the country of oil and gas is switching for renewables and gas and will be saving huge amount of tons of CO2S.

[M067-33] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:20:14 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

And we will be doing all sorts of things, and we will create ourselves, we will try to make ourselves a model for everybody, and we will be the producer of all the hydrogen, the green, the blue, the solar, renewable, the gas, the shale gas, the oil, the clean oil, the clean products, and we will do it with a circular carbon economy, and if we can become the model of what responsible producer of energy should be, it will be our pleasure, but we know we have a history of being so responsible, and we will never commit ourselves to anything without the assurance to ourselves before to our people, that we could do it and we could deliver it.

[M067-35] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:21:56 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

it is always and I need your testimony on that, show me any country in planet Earth that is investing seriously and hydrogen today, that is putting their money where their mouth are, but Saudi Arabia when it comes to green hydrogen.

[M067-37] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:22:18 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

So we are the party, we are putting our money where our mouth are, we also have done that with blue hydrogen, we believe seriously that relatively speaking, there is huge challenges when it comes to green hydrogen and also blue, each and every one of them come with its own challenges, but we feel that we are set up to be probably the most effective or efficient or competitive producer of both because we have been securing records when it comes to our renewable projects.

[M067-38] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:23:04 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

And we have had a history of 50 years working with desalination, and now we are moving to our odds when it comes to desalination, there is this so-called self-propelling element which would make even destination much cheaper by what 30 some percent, something we have already are working on it now, we have the technology for it, the combination of the two will put us or set us to be the most efficient, most cost effective producer of green hydrogen, the challenges for us, the market, the size of our market, and how much again people are willing to put their money where their mouth are by committing to buy when we produce, like what happened in NGLS. You have written a lot about that, NGL would not have happened without a full cycle or a full commitment from upstream all the way to the receiving end to the distributor that this all infrastructure and investment were done back to back with commitments from both ends.

[M067-39] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:24:13 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

We are aspiring to reach out to our friends, we have been working with our friends in Germany, we will be doing soon in France and the UK, but our hope is to aggregate with the EU and the UK, because the more accumulation of a sizable market, the better the economics might be, and also, let us not forget we still have a technological challenge, it would be better that people congregate and attend to these technological challenges, because without working each and every one alone would probably serve the whole.

[M067-41] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:25:11 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

Yeah, but you need that will, we have discharged that will we need others to discharge the same will, and the most effective will that we require now is that spirit of collective attendance to these major issues.

[M067-43] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:25:33 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

Yeah, absolutely. The blue where we are going to be dedicating some good chunk of Jafurah Gas to it, which is shale gas. Who could have said one day that Saudi Arabia would be interested in producing shale gas? Well, here you go, because we are going to get a huge amount of liquids that would come out of it, it will support the economics of it because we will have a good amount of liquids to be used as chemical feed, we are expanding our chemical sector as a result of that, we are going for even oil to chemical because we want to make sure that we hedge our future with oil because we still want to monetize our oil, not sit on it.

[M067-44] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:26:15 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

But you see that we are trying to monetize everything, but again, I keep telling people let us not compromise energy diversity, let us not compromise energy security and more also as equally important, let us not compromise climate change and protecting our climate simply because we are reaching out to things that may not even happen, not in our lifetime, but for generations to come, because they are across the board.

[M067-46] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:27:10 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

We have been working with our friends, both we have the G20 coming very soon, even sooner than COP26. I leave it for you to ask our friends from the UK, the US, Italy, the EU. We have been working and laboring hard again, to focus on what we have been saying now, let us focus on emissions and emission reductions of all gases, of all sectors, this will be a good way to integrate and be inclusive to everybody, let us talk about mitigating unabated gases that will impact the climate.

[M067-47] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:27:54 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

There are countries, by the way, we are making it easier for everybody, we are not seeking funding, we are not seeking anything, we are seeking one contribution collective efforts to create technologies to enable us all to mitigate. You will find the US, Canada, Australia are in the same boat when it comes to mitigating because we are still huge. Mexico, others, Brazil, we will be in the same boat, we still have lots of hydrocarbons and fossil fuels and we need to monetize them, but we need to monetize them in a way that does not impact environment.

[M067-49] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:28:50 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

Now we have got quite a few rabbits in that, we are moving to oil, to chemicals. We are creating our own hedge about that, I will just give you that in Saudi Arabia as bid wins, we always hedge, we do not get into uncharted water or even uncharted desert, let alone water, we take our careful steps and we make sure that there is always a plan for the so called I keep telling my colleagues here and my friends at the young cadets that I work with now, they do not work with me, I work with them, that you would always have to find something for that scenario or that situation that may come, which is the so-called 0.0001% chance, in my life those things that we thought that they do not happen, they do happen.

[M067-51] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:29:57 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

let us hope. As I am closing, I will repeat what I said. Let us work on energy security, and protecting climate, and attending to climate change and let us hope that we do not create another sequel to that wonderful movie, Gone with the Wind.

[M067-53] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:30:41 · India Energy Forum - Ceraweek by IHS Markit · 2021-10-20 · مشاهدة عند هذا التوقيت

Always a pleasure. Thank you