"Collaborative problem solving convinces us that, together, we are more innovative. We move faster and we are more successful than going it alone."

Mr. Al Naimi opened by expressing Aramco’s solidarity and support for all the people and businesses impacted by COVID-19. He said, “If 2020 has taught us anything, it is that we are in this together and so, perhaps, we will carry this wisdom forward into happier times.”

He said oil demand in most end-use sectors will recover to pre-COVID levels by the latter part of this year, with aviation most likely lagging behind. Looking longer term, he believes energy alternatives have an important role in creating a sustainable energy future, but he cautioned that a wide range of technical, economic, and infrastructure problems must first be overcome. He encouraged intensified efforts in that direction while acknowledging that it will take time.

In his view, the world will likely use existing and new energy sources in parallel for a long time to come, with new energy only slowly making inroads into oil demand. He said this makes it even more crucial to intensify efforts to reduce the carbon footprint of oil production, and maximize the efficiency of its end use. He believes this is central to meeting the Paris goals.

Touching on evolving approaches, Mr. Al Naimi said successful companies will need to be more cost efficient, cost competitive and, above all, climate conscious—and that technology will be key in all these areas. He also believes the petroleum industry and service companies must increase their collaboration efforts to deliver on these goals.

He cited a number of collaborations with Baker Hughes that are transforming what’s possible—including WellLink™ data transmission and visualization, wellhead and drill bit manufacturing supply-chain advantages, a JV for development of non-metallics across the energy sector, and new drilling technologies that are achieving lower bottom hole pressures than ever before.

Saudi Aramco’s strategic priorities for contributing to a seamless energy transition and lower carbon future:

1. Oil remains a priority, with the goal of producing with ever-greater efficiency.
2. Intensified efforts to reduce carbon emissions (Saudi Aramco’s upstream carbon intensity is already among the lowest in the world) in both the production and use of oil. Sustainability is the highest-priority technology domain in Aramco’s R&D portfolio.
3. Build an increasingly cleaner energy portfolio. This includes more gas, creation of a world-leading chemicals business, a focus on non-metallic materials, development of blue hydrogen and ammonia, and participation in the Kingdom’s renewables program.