Aramco’s Green Pivot Stalls: Renewable Spending Stuck at 4.7% of Capex Despite 10% Pledge

Saudi Aramco’s much-touted energy transition strategy shows signs of faltering, with Q1 investments in low-carbon projects totaling just 780million(4.7780million(4.716.6 billion allocated to conventional oil projects.

Failed Promises:

1. Project Delays
   • Blue hydrogen plant postponed to 2027 (originally 2025)
   • Carbon capture investments fell 32% YoY to $210M
2. Financial Reality
   • Renewables ROI: 6-8% vs Oil/Gas: 15-20%
   • Shareholder pressure to maintain dividends
3. Contradictory Signals
   • CEO Nasser: “Hydrocarbons remain backbone of energy security”
   • Meanwhile, Saudi’s PIF invests $12B in foreign solar/wind

Market Backlash:

• ESG funds reduced holdings by $1.8B in Q1
• Climate resolution won 23% support at AGM

Expert Take:
“These numbers prove Aramco’s transition talk is just PR,” said Bloomberg NEF’s Middle East head. “They’re betting the world will fail on climate goals.”