The head of Saudi state oil giant Aramco said on Sept. 20 Europe's plans to cap energy bills for consumers and tax energy companies were not long-term or helpful solutions for the global energy crisis.
"Freezing or capping energy bills might help consumers in the short term, but it does not address the real causes and is not the long-term solution," CEO Amin Nasser told a forum in Switzerland.
"And taxing companies when you want them to increase production is clearly not helpful."
Governments across Europe have ploughed hundreds of billions of euros into tax cuts, handouts and subsidies to tackle an energy crisis that is driving up inflation, forcing industries to shut production and hiking bills ahead of winter.
Under EU plans announced last week, excessive profits from energy companies would be skimmed off and redistributed to ease the burden on consumers.
On Sept. 20, Nasser, who heads the world's largest exporter of oil, said continuing underinvestment in the hydrocarbons sector at a time when alternatives to fossil fuels were still not readily available was among the root causes of the problem.
"The conflict in Ukraine has certainly intensified the effects of the energy crisis, but it is not the root cause," he said.
"Sadly, even if the conflict stopped today as we all wish, the crisis would not end," he said.
Aramco has been investing to raise the kingdom's oil capacity to 13 MMbbl/d by 2027, but Nasser warned that globally investments in hydrocarbons were still, "too little, too late, too short term."
The underinvestment comes at a time when spare capacity is thin and demand is "fairly healthy" despite strong economic headwinds.
"When the global economy recovers, we can expect demand to rebound further, eliminating the little spare oil production capacity out there," Nasser said.
"That is why I am seriously concerned."
Recommended Reading
Greylock Packs a One-Two Punch with ‘Demand-Driven Projects’
2025-07-13 - Privately held producer Greylock Energy gains traction in both upstream and midstream deal-making, boosting build-out in Appalachia and the Rockies.
ArcLight Acquires Ohio Power Plant
2025-07-11 - Infrastructure investment firm ArcLight Capital continues to focus on electrical generation with its latest acquisition of a gas-fired generation plant in Ohio.
Rising Phoenix Capital Continues Permian Basin M&A Streak
2025-07-11 - Rising Phoenix Capital acquired more Midland Basin mineral rights operated by ConocoPhillips, boosting exposure to the nation’s hottest oil basin.
Dividends Declared During the Week of July 7
2025-07-11 - Here is a compilation of dividends declared during the week of July 7 from select midstream and service and supply companies.
Fed: Oklahoma, Rockies E&P, OFS Outlooks Declined in 2Q
2025-07-11 - The quarter-over-quarter drilling and business activity index fell to -17 from 7 in the first quarter and -13 in the fourth quarter, the Kansas City Fed reported.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.