Saudi Aramco’s CEO: Even if conflict in Ukraine ended today, energy crisis would not end

Amin H. Nasser, CEO of Saudi Aramco, makes some comments on the global energy crisis, price caps and oil demand during his appearance on Tuesday.

Key quotes

Taxing companies when you want them to increase production is not helpful.

Increases in oil and gas investments this year are too little, too late and too short-term.

The response to global energy crisis so far shows deep misunderstanding of how we got there.

Capping energy bills might help consumers in the short-term, but is not a long-term solution.

Even with strong economic headwinds, global oil demand is still fairly healthy today.

The real causes of energy insecurity are under-investment in oil and gas, no ready alternatives and no back-up plan.

When the global economy recovers, we can expect demand to rebound further eliminating the little spare oil production capacity out there.

Even if the conflict in Ukraine ended today, the energy crisis would not end.

Market reaction

WTI is defending the $85 mark, digesting the above comments. The US oil is up 0.76% on the day.