Demand for oil and gas will continue to grow for the next few decades and any fall in capital investment for the industry will cause "spikes" in prices and affect the global economy, according to the president and CEO of Saudi Arabian Oil Company (Saudi Aramco), CNBC reported.
Speaking Tuesday at the World Economic Forum in Davos, Amin Nasser told a Wall Street Journal panel that $25 trillion would need to be invested over the 25 years on new oil capacity to meet rising demand. He added that renewable energy will gain a market share over the long term but it would not be dominant.
"It will take decades for renewables to replace petroleum resources. So what we are doing in Saudi Aramco, we are building our capacity in the oil," he said.
He said that the Kingdom of Saudi Arabia had oil capacity of 12.5 million barrels per day and it continues to build on that capacity, as well as expanding its gas portfolio.
"We will be doubling our gas over the next decade," he said at the event. "This will enable us to put more crude oil onto the market," he added.
Oil prices have seen a dramatic fall since mid-2014 due to oversupply in the industry with analysts also noting a fall in demand. Saudi Aramco has underlined plans to diversify its production.
The Saudi Aramco CEO iterated that there was still healthy demand, however, even with long-term predictions that stretch out to 2060. He added that oil "will be with us for decades."
He said that more expansion is need needed in the sector and more capital would be required.
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