Amin Nasser, CEO of Saudi Aramco, speaks on the 2024 CERAWeek by S&P World convention in Houston, Texas, on March 18, 2024.F. Carter Smith | Bloomberg | Getty ImagesHOUSTON — Saudi Aramco CEO Amin Nasser stated Monday that the vitality transition is failing and policymakers ought to abandon the “fantasy” of phasing out oil and fuel, as demand for fossil fuels is predicted to proceed to develop within the coming years.”In the actual world, the present transition technique is visibly failing on most fronts because it collides with 5 onerous realities,” Nasser stated throughout a panel interview on the CERAWeek by S&P World vitality convention in Houston, Texas.”A transition technique reset is urgently wanted and my proposal is that this: We must always abandon the fantasy of phasing out oil and fuel and as an alternative put money into them adequately reflecting practical demand assumptions,” the CEO stated to applause from the viewers.The Paris-based Worldwide Vitality Company forecast final 12 months that peak oil, fuel and coal demand would are available 2030. Nasser stated demand is unlikely to peak anytime quickly, not to mention by that 12 months. Nasser steered that the IEA is specializing in demand within the U.S. and Europe and must deal with the creating world as effectively.Oil Costs, Vitality Information and AnalysisNasser stated different vitality sources have been unable to displace hydrocarbons at scale, regardless of the world investing greater than $9.5 trillion over the previous twenty years. Wind and photo voltaic at the moment provide lower than 4% of the world’s vitality, whereas complete electrical car penetration is lower than 3%, he stated.In the meantime, the share of hydrocarbons within the international vitality combine has barely fallen within the twenty first century from 83% to 80%, Nasser stated. World demand has elevated by 100 million barrels of oil equal per day throughout the identical interval and can attain an all-time excessive this 12 months, the CEO stated.Gasoline has grown 70% because the begin of the century, Nasser stated. The transition from coal to fuel is chargeable for two-thirds of the reductions in carbon emissions within the U.S., he stated.”That is hardly the longer term image some have been portray,” Nasser stated. “Even they’re beginning to acknowledge the significance of oil and fuel safety.”Creating nations within the international south, in the meantime, will drive oil and fuel demand as prosperity rises in these nations, which signify greater than 85% of the world’s inhabitants, the CEO stated. These nations obtain lower than 5% of the funding focusing on renewable vitality, he stated.Nasser stated the world ought to focus extra on decreasing emissions from oil and fuel along with renewables. The CEO stated effectivity enhancements alone over the previous 15 years have decreased international vitality demand by virtually 90 million barrels per day oil equal. Wind and photo voltaic, in the meantime, have substituted solely 15 million barrels over the identical interval, he stated.”We must always section in new vitality sources and applied sciences when they’re genuinely prepared, economically aggressive and with the suitable infrastructure,” Nasser stated.Do not miss these tales from CNBC PRO: