WHEN: Today, Monday, January 22, 2024
WHERE: "CNBC Leaders: Amin Nasser from the World Economic Forum in Davos"
Following are excerpts from the unofficial transcript of the interview with Aramco CEO Amin Nasser and CNBC's Sara Eisen on "CNBC Leaders: Amin Nasser from the World Economic Forum in Davos" today, Monday, January 22 airing at 8pm ET. Following is a link to video on CNBC.com: https://www.cnbc.com/video/2024/01/22/aramco-ceo-red-sea-events-have-a-lot-of-implications-for-the-industry.html.
All references must be sourced to CNBC.
NASSER ON ENERGY OUTLOOK
AMIN NASSER: Well, you know let's look at 2023 last year. We were talking about peak oil even before that, but last year we were 102.5 million pounds. 2024 We're talking about another 1 million and a half, 104.
SARA EISEN: So not yet.
NASSER: 2025, they're talking about another million pounds. So there is growth. But you see at the same time, you see when if you go back 40, in the 90s or 80s when I joined, 80% of the energy use was from fossil fuels. Today, it's 80% but the scale is higher.
NASSER ON RED SEA DISRUPTIONS
EISEN: Additionally, I spoke to a number of business leaders including Aramco CEO Amin Nasser as we discussed how for instance one thing the Red Sea disruptions are affecting the global oil market right now. Here's what he says about this.
NASSER: We do have—
EISEN: An alternative route.
NASSER: Alternative routes while others don't have an alternative routes to bring their – to through the Red Sea.
EISEN: I saw Qatar had to reroute a gas tanker.
NASSER: Unless you have pipelines for example, we do have as I said pipeline that will to meet our requirements. However, there are certain products that will be impacted, but we do have ways of managing that, that goes through government, but we can through our trade code. And we can manage by finding other alternatives.
EISEN: What about for the industry as a whole how disruptive is it?
NASSER: It is disruptive in a way continues for increasing the burden on having available tankers because when you take two to three weeks more to deliver, the tanker is booked for a longer time, there's not enough tankers. So even containers, shipping containers and all of that. So, extend for a longer period of time it will have an impact on supply chain because you should not look only at oil and gas. There is material, spare parts, equipments, goods that comes from that will have an impact. So if it, it will put a lot of burdens on the companies and industries because they have to pay higher cost. It will take longer, insurance prices goes up so a lot of implications for the industry.