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:
- Project Delays
- Blue hydrogen plant postponed to 2027 (originally 2025)
- Carbon capture investments fell 32% YoY to $210M
- Financial Reality
- Renewables ROI: 6-8% vs Oil/Gas: 15-20%
- Shareholder pressure to maintain dividends
- 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.”
