Global energy demand will increase 40 percent by 2030, Saudi Aramco President and CEO Khalid A. Al-Falih said during a recent visit to its markets in Asia. “The developing economics of the world are at the heart of the International Energy Agency's forecast that the world's primary energy demand will increase,” he said, noting that the forecast projects growth of 40 percent by 2030 - roughly 1.5 percent per year. And oil will remain the single largest fuel in the energy mix, he added, the Saudi news agency quoted him as saying on Sunday. The company's maximum sustainable production capacity is now at 12 million barrels per day - a figure that will ensure reliability of supply to meet this forecast increase in demand, he added. Even though oil and gas will be around fore some time, the energy environment has changed and companies need to be prepared, Al-Falih said. As the world's energy demands increase and suppliers work to meet them, unconventional sources of oil, such as natural gas liquids, heavy oils and oils located in difficult environments, will need to be tapped, he said. Al-Falih further said that “there is no shortage of oil potential but the complexity of bringing oil online increase significantly as we tap into more difficult conventional and non-conventional oil resources.” This - along with the fluctuating oil price - means that developing energy projects will take more time and more money, he added. Now, he said, is the time to step away from speculation and toward investment. “Capital prefers certainty. A vague global energy future would discourage essential investments across the energy value chain,” he said. There is also a need to invest responsibility by taking the environmental impact into consideration. “Societal expectations to climate change are real,” he said, “and the industry is expected to take a leadership role.” He added that one way of doing that is to make fuel more energy efficient by enhancing oil recovery through carbon capture and sequestration and improving the efficiency of engines. Alternative energy is also an important part of the solution. Saudi Aramco is working to further develop solar technology in the Kingdom through a partnership with Japanese company Showa Shell and the King Abdullah University of Science and Technology's Solar and Alternative Energy Science and Engineering Research Center. In the meantime, Al-Falih said “the prudent course is to sustain global economic development - and with it social advancement - by making the best use of proven sources of energy.” As alternative energies develop, so will the petroleum market. “Ultimately, as renewables begin to displace petroleum over time, there will be attractive uses for our hydrocarbons other than burning,” he pointed out.
