saudi aramco turns to tech to power future of oil
Last Updated : GMT 18:20:41
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 18:20:41
Arab Today, arab today

Saudi Aramco turns to tech to power future of oil

Arab Today, arab today

saudi aramco turns to tech to power future of oil

Wael Mahdi

While many major global investors think renewable energy and electrical vehicles will be dominant in the future, Saudi Aramco is making a different bet.

Some project that there is no future for combustion engines, and that the use of fossil fuel will draw to an end during our lifetime. Yet all this is wishful thinking fueled by some hard-line environmentalists.

The share of fossil fuels in the global energy mix is 81 percent, something that hasn’t changed in 30 years, while the share of oil within the fossil fuel global mix is increasing, the executive director of the International Energy Agency, Fatih Birol, said in January. He also said that he doesn’t see a great impact on oil demand from electric vehicles.

The danger in overlooking these facts is that the world is not preparing well for the next wave of population growth, urbanization and middle-class expansion. More investments will be channeled to other sources, leaving less funding for mega oil and gas projects.

Mohammad Barkindo, secretary-general of the Organization of the Petroleum Exporting Countries (OPEC), said last week that world oil consumption will hit 100 million barrels a day later this year, “much sooner” than earlier projected. “Therefore stabilizing forces which create conditions conducive to attracting investments are essential,” he added.

So why is there so much talk about the demise of fossil fuels, and oil in particular? Mostly, these discussions are part of political or investment agendas.

Many leaders in the industrial world do not want to be dependent on energy sources that come from foreign lands ruled by political systems that are not in line with their political beliefs and ideology. Some politicians also have green agendas, which further complicates the political argument around world energy.

Helping them in this is the Western media, which often overstates the possibility of a liberalization from fossil fuel.

The highest rates of population growth are not in developed industrialized countries, but in developing or emerging economies. In these economies the level of electrification is still not as high as in countries such as Norway. And as fossil fuel is becoming cheaper relative to the last five years, and the supply of natural gas and oil is growing, fossil fuel is still holding ground.

Saudi Aramco still sees a future where consumers around the world depend on oil and gas. That does not mean however that Aramco is not feeling the pressure from competing technologies like electrical engines. The company isn’t standing still like other national oil companies; it is racing with time to develop better technologies to extend the life of its products in the face of disruptive technologies.
It is making two big bets for the future. One is enhancing the efficiency of fossil fuel in transportation, and the other area is creating more demand for crude oil in the chemical sector.

Saudi Aramco Technologies Company, a unit of the world’s largest oil exporter, on Aug. 8 signed an agreement with Japanese car maker Mazda and the National Institute of Advanced Industrial Science and Technology (AIST) to develop advanced low-emission engines.

The agreement was an effort by Aramco to “reduce greenhouse gas emissions from the transport sector” as well as work toward an “affordable mobility future,” Ahmad Al-Khowaiter, Aramco’s chief technology officer, said in a statement.

Aramco’s research centers are also developing a gasoline engine that uses diesel-like compression technology. In parallel, it is working with a US company called Achates Power on turning gasoline combustion engines into marine-like long stroke engines, Al-Khowaiter said.

On the chemicals front, Aramco is trying to develop technologies that will help it convert crude directly into chemicals without refining it first into lighter products such as naphtha, thereby cutting the cost by at least 30 percent.

Amin Nasser, CEO of Aramco, said in January that the use of oil in the petrochemicals sector is likely to become a key source of oil demand growth.

He added that using oil as a feedstock would “secure a large and reliable home for our future oil production.”

Another force behind the technological transformation of Saudi Aramco is the new drive of the government to invest in future technologies through its Public Investment Fund (PIF).

In the future, Aramco — after it goes public — will be owned by the PIF, which is venturing into electrical vehicles. This might spur change in Aramco in an unexpected way.

Aramco is not forgetting its role as a major oil and gas company. Yet as it  prepares for the future by securing more hydrocarbon supplies, the world must think about demand security as well.

Consumers’ diversification of energy sources is an essential approach but it must be done in a gradual and less hostile manner. No major energy transition will happen overnight; it may take decades. Therefore, more hydrocarbons investments is needed worldwide — and less hostility.

GMT 11:10 2018 Friday ,21 September

"Syria" Putin Between Fact and Fantasy

GMT 07:10 2018 Thursday ,20 September

Imran’s Saudi visit: Give him time to show he "Khan"

GMT 07:05 2018 Thursday ,20 September

Iran accuses Saudi Arabia of theft

GMT 19:08 2018 Wednesday ,19 September

World powers jockey for influence in Eastern Europe

GMT 18:16 2018 Wednesday ,19 September

Downing of the Russian aircraft: Who attacked whom?

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

saudi aramco turns to tech to power future of oil saudi aramco turns to tech to power future of oil

 



Arab Today, arab today Burberry revamps under new designer Riccardo Tisci

GMT 15:11 2018 Tuesday ,18 September

Burberry revamps under new designer Riccardo Tisci
Arab Today, arab today Ryanair cabin crew in five countries to strike Sept 28

GMT 17:27 2018 Thursday ,13 September

Ryanair cabin crew in five countries to strike Sept 28
Arab Today, arab today Modern colorful bedroom renovation

GMT 11:23 2017 Thursday ,21 December

Modern colorful bedroom renovation
Arab Today, arab today Twitter now allows live audio-only broadcasts

GMT 17:26 2018 Saturday ,08 September

Twitter now allows live audio-only broadcasts
Arab Today, arab today Skincare PR Performance Full Year 2017

GMT 10:35 2018 Monday ,22 January

Skincare PR Performance Full Year 2017
Arab Today, arab today Aeroflot expects group profit decrease by end of year 2018
Arab Today, arab today For the Variety of Interior Design Styles

GMT 11:14 2017 Tuesday ,19 December

For the Variety of Interior Design Styles
Arab Today, arab today France sanctions businesses linked

GMT 01:58 2018 Wednesday ,24 January

France sanctions businesses linked

GMT 04:53 2017 Tuesday ,19 December

Egypt’s government signs agreement with Switzerland

GMT 04:27 2017 Tuesday ,19 December

Tensions dominate the Iranian parliament amid fears

GMT 11:35 2017 Monday ,18 December

Putin appreciates U.S intelligence cooperation

GMT 08:05 2017 Monday ,18 December

Mona Zaki reveals details of her new show

GMT 01:55 2016 Monday ,13 June

2 injured in Beirut explosion

GMT 17:32 2017 Sunday ,17 December

Polls open in Chilean presidential election

GMT 08:14 2013 Wednesday ,24 July

Ayten Amer refuses to be compared to Soad Hosny

GMT 08:40 2017 Monday ,18 December

Menna Shalaby happy for her campaign success

GMT 16:23 2012 Wednesday ,15 February

Traditional handicrafts in Qatar

GMT 07:18 2015 Monday ,07 September

Bangladesh launches first lesbian comic strip

GMT 21:00 2017 Friday ,29 September

Proust paid for good reviews of his masterpiece

GMT 21:17 2017 Tuesday ,08 August

Turkmenistan bans cars for a day to promote bikes

GMT 19:45 2017 Wednesday ,25 October

'Idiots of the century' swim in baited croc trap

GMT 09:51 2017 Wednesday ,05 April

Pyeongchang hopeful NHL stars will play

GMT 12:34 2016 Saturday ,31 December

Vienna ovation for 11-year-old girl's Cinderella opera

GMT 14:00 2017 Saturday ,25 February

Reveals his passion for Mandole

GMT 13:06 2017 Monday ,10 April

A Washington museum puts faces on America's wars

GMT 13:15 2017 Monday ,10 April

Top German art show Documenta debuts shared

GMT 12:43 2017 Saturday ,04 November

Nickel, zinc surge as industry heavyweights meet
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday