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Saudi Aramco: Public
Impact of Global Energy Transition on Oil Producing Countries
Opportunities for Saudi Aramco
Ahmad O. Al Khowaiter
Chief Technology Officer
Saudi Aramco
Saudi Aramco: Public
Reduction or removal, or both?
Source: Goldman Sachs
Reduction
Removal
Saudi Aramco: Public
Reduction or removal, or both?
Source: Global CCS Institute and Goldman Sachs
Global marginal abatement cost curve 20301,100
10 7570605 30 45403525 50 5520 6515
600
500
400
300
100
0
200
-100
-200
Med. cost forestry
Cement CCS
Coal-to-gas switching (Asia Pacific) DACCS
Emissions abatement (GtCO2 per year)
Low cost forestry
High cost forestry
HD EV (city)
Reduced soil erosion
Fire mgmt.
BECCS
HD EV (rural)
LD EV (city)
Solar (med. gas price)
Improved cropland mgmt.
Aviation biofuel
Improved forest mgmt.Coal CCS
LD EV (rural)
Improved grazing practices
IGCC CCS
Improved livestock mgmt.
Abate
ment cost (U
S$/ton C
O2)
NGCC CCS
Nature-based offsetting
Technology-based offsets
Carbon capture and storage
Reduction solutions
Saudi Aramco: Public
Circular carbon economy - O&G industry
CIRCULAR
CARBON
ECONOMY
Reduce
Reduce the amount of
emissions
Remove
Remove emissions
permanently
• Reforestation• Carbon Capture and Storage (CCS)• Direct Air Capture (DAC)• Bioenergy with CO2 storage
• Efficiency improvement• Minimize flaring and methane
emissions• Renewable integration
Saudi Aramco: Public
Circular carbon economy - O&G industry
Reuse
Recycle
Utilize CO2 directly
Convert to material
and chemicals
CIRCULAR
CARBON
ECONOMY
• CO2 to chemicals• e-fuel• Concrete• Fertilizers/urea
• CO2 EOR
Reduce
Reduce the amount of
emissions
Remove
• Reforestation• Carbon Capture and Storage (CCS)• Direct Air Capture (DAC)• Bioenergy with CO2 storage
• Efficiency improvement• Minimize flaring and methane
emissions• Renewable integration
Remove emissions
permanently
Saudi Aramco: Public
Leading in carbon emissions performance
0
50
100
150
200
250
0
20
40
60
80
100
120
140V
en
ezu
ela
Alg
eria
Ca
na
da
Ira
n
Ind
on
esia
Ira
q
Nig
eria
Om
an
Un
ite
d S
tate
s
Lib
ya
Bra
zil
Me
xic
o
Ru
ssia
Ka
za
kh
sta
n
Co
lom
bia
Ind
ia
Un
ite
d K
ing
do
m
An
gola
Ch
ina
UA
E
Kuw
ait
Qa
tar
Aze
rba
ijan
No
rwa
y
Sa
udi A
rab
ia
GH
G E
mis
sio
ns (
MM
tCO
2e
)
Ca
rbo
n In
ten
sity (
kg
CO
2e
/bb
l)
Oil Production Greenhouse Gas Emissions
Carbon Intensity Absolute emissions
Source: Stanford University OPGEE model
Saudi Aramco: Public
Leading in carbon emissions performance
Source: Global Methane Initiative, GMI
0
100
200
300
400
500
600
700
Me
tha
ne
Em
issio
ns (
MM
t C
O2
e)
2020 Methane Emissions from Oil & Gas
Saudi Aramco: Public
Leading in carbon emissions performance
Source: GGFR
0
100
200
300
400
500
600
700
800
900
1000
0
200
400
600
800
1000
1200
1400
1600
1800
Fla
rin
g E
mis
sio
ns (
Bscf)
Fla
rin
g In
ten
sity (
scf/
bb
l)
2020 Gas Flaring Emissions
Flaring Intensity Flaring Emissions
Saudi Aramco: Public
Growth in chemicals
70.1%65.8%
65.5%66.4%
66.8%
11.7%
12.1%
12.8%
12.0%
11.5%
15.1%
17.2%
16.6%
16.4%
16.1%
3.2%
5.0%
5.1%
5.2%
5.6%
0
100
200
300
400
500
600
700
800
2020 2025 2030 2035 2040
MM
TPA
Pet
roch
emic
als
Petrocemical Demand
Oil-Derived Liquids** LPG** Ethane Other Feeds**
Source: Aramco Internal, Nexant and IHS Markit, 2020
Saudi Aramco: Public
Opportunity in low-carbon fuels
Source: IEA ETP 2020 – Sustainable Development Scenario
0%
20%
40%
60%
80%
100%
Fuel sh
are
2020 2030 20502040
Hydrogen
Low-carbon fuel
Electricity
Oil-based fuels
Saudi Aramco: Public
Opportunity in hydrogen
H2
Blue Ammonia Supply Chain for Export
Natural gas
Petcoke
CO2 sequestration
Ammonia plant Hydrogen plant
H2
N2
Blue Hydrogen Mobility
2020 2030 2040 2050
Source: Hydrogen Council, 2021
Saudi Aramco: Public
Direct air capture technology
Sequestering in materials or
underground
CO2 released from
energy use
CO2 captured from
flowing air
Saudi Aramco: Public
Summary
▪ Circular carbon economy offers an effective framework for O&G industry to meet decarbonization targets.
▪ Saudi Aramco is leading the industry in carbon emissionsperformance.
▪ Many emerging opportunities available for O&G industry inline with the energy transition
▪ Opportunities for Saudi Aramco include expansion in low-carbon non-fuel applications (materials and chemicals), low-carbon fuels (synthetic fuels, biofuels, and hydrogen).
▪ Direct air capture is an important technology for net-zero future.