According to Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, a lack of investment in global refining capacity is one of the main drivers of the global rally in gasoline, diesel, and jet fuel prices. He also reiterated the Kingdom’s view that a hasty transition to cleaner energy ignores realities.
Speaking at the Future Aviation Forum in Riyadh, as quoted by Reuters, the Crown Prince said, “All mobility fuels have skyrocketed … and the gap between crude prices and these products in some cases is actually 60%.”
According to Arab news, the prince also stated that discouraging the industry from investing will result in a shortage of supply, which will lead to inflation, which will damage the end consumer.
Biofuels alone will not be enough to achieve sustainability. He went on to say that all solutions, including hydrogen, should be studied to achieve a better low-carbon future.
The Saudi prince has long expressed his opposition to requests to quit oil and gas developments. He stated in February of this year: “The net-zero does not mean cherrypicking, net-zero does not mean zero oil,” he added. The sharp decline in oil and gas investments has created a danger “that the world will not be able to produce all the energy it needs to promote recovery.”