Aramco’s CEO says the little spare oil capacity is not the only problem the industry is facing. Aviation is picking up pace, and that translates into more jet fuel consumption. That doesn’t leave any room for producing more gasoline or diesel. The man carefully suggests we might keep seeing prices going up for businesses and individuals – an aspect that’s going to keep inflation at a higher-than-expected rate.
Moreover, agricultural activities have already started to become more intense because of the war between Ukraine and Russia. Countries that rely on these countries' grain exports are facing massive shortages that might spike social unrest. Meanwhile, in Europe and Northern America, people are trying to find ways in which pumping gas doesn't become a major financial headache.
Nasser talked to Reuters and said that the transition to zero-emission transport is happening with no rules set in place and everyone’s trying to push different agendas. He says there’s no dialogue happening, even if the prices for gas and diesel keep climbing up.
The CEO also argues that not having any new investments made in the fossil fuel sector will most likely keep this current pricing situation going. Nasser explained the company he’s running can’t increase output faster than already agreed upon because of this reason and other factors that leave oil production out of focus.
The Saudi Arabian Oil Company (Saudi Aramco, formerly known as Arabian-American Oil Company) is the largest oil producer in the world. It is now also the most valuable company in the world after it surpassed Apple.
It seems like without a clear policy from developed nations across the world, we are all headed towards an unknown scenario that might change how we view driving for fun or commuting. A shift is already happening. Just a couple of days ago, we saw a German farmer giving up on her car for a horse-drawn carriage.
The auto industry is also facing massive challenges when it comes to sourcing parts and ramping up production. Cars are expensive, fuel is set to remain pricey, and nothing seems like it’s going to change this current situation for the better.