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.