Finance

Aramco wants to be more or less climate neutral in three decades

Aramco writes this in a press release on the eve of the major climate summit in Glasgow, Scotland.

So the oil giant’s goal is not to be a net emitter of greenhouse gases by 2050. This means that everything that is still emitted must be compensated.

Ifs and buts

There are a few ifs and buts. For example, Aramco explicitly writes that it only concerns parts that are fully owned by the company. This promise therefore does not apply to companies that only partially own it.

And – not unimportantly – it also does not apply to what the end users do with Aramco’s products. Think of it this way: the company wants to ensure that when extracting, processing and distributing oil (products) it does not blow extra CO2 into the air, but does not want to take responsibility for what happens if consumers use those products in their throw combustion engine.

“That is the responsibility of end users, regulators, policy makers and governments,” said Aramco chief executive Amin Nasser at a conference this weekend.

That is actually how the British-Dutch Shell is in the competition, but earlier this year that company was forced by the court to reduce emissions by 45 percent by 2030, and it must also include the emissions from end users.

The oil and gas giant is also a thorn in the side of the oil and gas giant, among other things, the extra obligation that Shell has received with regard to emissions from consumers and other end users. Shell will therefore appeal against the ruling.

Aramco: now first extra pumps

In the meantime, we will certainly not notice much of Aramco’s ambitions in the short term. The company also says it will increase the production capacity of oil. Nasser therefore argued for additional investments in order to meet global demand.

That is not very surprising, because Aramco also shows that there is still an incredible amount of money to be made with oil. The company made a profit of 40.5 billion euros in the first half of 2021.

2060 Saudi Arabia climate neutral

If it succeeds in meeting its own goals in 2050, Aramco as a state-owned company will be ahead of Saudi Arabia as a whole. That country wants to be climate neutral by 2060, it announced yesterday.

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