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21-09-22

Aramco CEO: putting higher taxes on oil firms is not long-term solution

(MENAFN) Putting higher taxes on oil firms and capping energy bills are not long-lasting solutions to the worldwide energy catastrophe, as stated by Saudi Aramco chief executive Amin Nasser, as he cautioned around the lack of investments in the area.

Administrations through Europe have invested hundreds of billions of euros into tax reductions, handouts and subsidies to fight an energy catastrophe that is triggering inflation to higher rates, pushing industries to stop production as well as surged bills ahead of winter.

Under EU strategies declared last week, extreme revenues from energy firms would be skimmed off and restructured to soften the weight on costumers.

Nasser, who leads the biggest exporter of oil across the world, stated that carrying on underinvestment in the hydrocarbons area at a time when replacements to fossil fuels were still not eagerly obtainable was between the root reasons of the issue.

Nasser informed a forum in Switzerland that “Freezing or capping energy bills might help consumers in the short term, but it does not address the real causes and is not the long-term solution.”

Adding that “And taxing companies when you want them to increase production is clearly not helpful.”

He continued: “Even if the conflict in Ukraine ended today, the energy crisis will not end. The real cause of energy insecurity is underinvestment in oil and gas.”

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