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Energy security dominated the opening day of the 25th WPC Energy Congress in Riyadh. Saudi Arabia said it would respond seriously to recent attacks, while energy-sector leaders discussed growing threats to global oil and gas supplies.
Held in Saudi Arabia for the first time in its 93-year history, the congress is taking place at the Riyadh Front Exhibition and Conference Center near King Khalid International Airport. The airport was hit twice during Houthi attacks over the weekend. According to a new aviation notice, it will remain closed until October 17.
Saudi Arabia vows serious response to attacks
Opening the congress, Saudi Energy Minister Prince Abdulaziz bin Salman stressed that national security takes precedence over energy policy. Addressing delegates, he said, “There is no word for fear in the Saudi lexicon,” and described Riyadh as the capital of energy security.
Referring to the recent attacks, the minister said events in recent weeks had been serious and the country’s response should be “equally serious.” According to Reuters, more than 15 people have been killed in Houthi attacks on Saudi Arabia over the past two weeks.
Abdulaziz bin Salman said the country would continue its Vision 2030 program, energy investments and industrial development, and remain committed to its obligations to citizens and international partners. Addressing the congress theme, “Pathways to an Energy Future for All,” he said security must underpin the energy transition: “There can be no energy future for all without energy security for all.”
He said a sustainable energy transition capable of withstanding future shocks requires security, affordability, investment and resilience to be ensured together.
Alternative export routes and the Strait of Hormuz
The energy minister discussed Saudi Arabia’s long-term investment in infrastructure designed to withstand disruptions. Saying energy security could not be taken for granted, he said recent events had tested the country’s infrastructure, institutions and people, as well as decisions made years ago.
Abdulaziz bin Salman cited decades of investment in storage capacity, spare production capacity, alternative export routes, technology, local supply chains and a skilled workforce as measures to prepare for crises. Resilience, he said, is not only about pipelines and production capacity, but also the ability to keep operations running, repair damage, redirect supplies and recover quickly from disruptions.
He stressed the importance of local production and capabilities in enabling companies to continue operating when international supply chains are disrupted. As an example, he cited Saudi Arabia’s East-West pipeline, which carries crude oil from the country’s Eastern Province to Yanbu on the Red Sea coast. The route allows oil exports to bypass the Strait of Hormuz. The minister concluded his speech to applause from congress delegates.
According to the Saudi Press Agency, Prince Abdulaziz signed energy cooperation agreements with Kuwait, Qatar and Egypt on Sunday. The agreement with Qatar covers oil, gas, refining, petrochemicals and clean hydrogen, as well as the possibility of developing joint pipelines for energy transport and exports. The agreement with Kuwait concerns electricity grid interconnections, power exports, energy storage and smart grids.
Kuwait’s oil minister said in August that his country was discussing a new crude oil export pipeline with Saudi Arabia and other Arab states. Anwar Gargash, an adviser to the president of the United Arab Emirates, said attacks on Saudi Arabia threatened all Gulf countries and called for renewed regional security and defense cooperation.
The head of the International Energy Agency has described the Strait of Hormuz crisis as the world’s biggest energy security crisis. Although crude oil exports from the Gulf have partially resumed via alternative routes, shipments of refined petroleum products and liquefied natural gas (LNG) remain at very low levels.
Saudi Aramco CEO Amin Nasser said pressure on crude oil supplies would continue until the Strait of Hormuz was fully reopened. He said commercial oil inventories stood well below 6 billion barrels and that replenishing them while meeting global demand could take up to two years.
More than 25,000 delegates expected at congress
WPC Energy President Pedro Miras said energy demand would continue to rise as the world’s population approaches 10 billion. He stressed the importance of using a range of energy sources and identified economic development as a fourth priority alongside security, affordability and sustainability. In Miras’ view, diversity in energy sources and producer countries can strengthen global energy resilience.
Organizers expect more than 25,000 delegates, including more than 100 ministers and nearly 500 business executives. The program features 800 speakers and more than 30 sessions. Nearly 1,000 companies have reserved space across the 50,000-square-meter exhibition area.
However, the program released on Monday morning did not list the heads of several prominent energy companies. Reuters reported that the CEOs of ExxonMobil, TotalEnergies, Shell, Chevron and BP, whose attendance had previously been expected, were not included. BP confirmed it had canceled its participation in the event.
Despite geopolitical tensions and supply disruptions, the International Energy Agency forecasts that global energy investment will reach a record $3.4 trillion this year. About $2.2 trillion of that total is expected to go to clean energy and electricity grids.
Oil prices fell on Monday amid hopes for an energy ceasefire, but Brent crude remained above $100 a barrel. The WPC Energy Congress and exhibition will continue on Tuesday, with the event scheduled to conclude with a closing ceremony on Thursday, October 15.
