Energy source integration aims to meet global demand: Aramco Exec

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Ashraf Al Ghazzawi, Executive Vice President of Strategy & Corporate Development at Saudi Aramco, said the future of energy lies in integrating both new and conventional sources to meet the rising global demand.

Hydrocarbons still dominate the energy market, with oil, gas, and coal accounting for about 80% of global energy demand, Al Ghazzawi said on X platform.

He added that there is room for the use of new energy sources, especially renewables and hydrogen, noting that they will serve as a complementary addition to traditional energy sources rather than replacing oil.

Al Ghazzawi emphasized that conventional energy will remain a key enabler of future economies and a fundamental part of the global energy mix. He added that Aramco is actively working to expand its new energy portfolio.

The oil major has been adopting a careful and calculated strategy regarding hydrogen, aiming to balance supply with demand and avoiding major investments or projects without clear guarantees of returns, the executive said.

He highlighted Aramco's investment in acquiring 50% of a hydrogen hub in Saudi Arabia’s Eastern Province, which will allow the company to leverage a first-mover advantage when it comes to exporting blue hydrogen, particularly if demand rises in Asian markets.