Al-Othman Eyes Energy's Role in Global Economy

FRANKFURT, Germany, October 28, 2009-- Germany’s MIT alumni got an insider’s view of the energy industry’s role in fueling the economy as Abdullatif A. Al-Othman, senior vice president of Finance, addressed the MIT Alumni Club of Germany’s annual meeting in Frankfurt.

Al-Othman was a speaker and panelist during the gathering, which followed the theme, “The Financial Crisis: Repercussions and Remedies.”

He said the energy industry fuels the global economy not only as the provider of energy but also as the source of strategic global investments with long-term horizons.

A growing population, coupled with economic growth in developing nations, ensures increased energy demand for many years to come, Al-Othman said. Access to energy has yet to be provided to one-third of the world’s population, so growing demand and expansion of energy access mean fossil fuels will continue to be the dominant energy source.

Al-Qahtani highlighted the importance of collaborative partnerships and the crucial role of technology in helping meet the world’s ever-increasing demand for hydrocarbon resources.

Al-Othman said producers and consumers of fossil fuels must maintain the utmost consideration for environmental impact. Investments must be made to develop exploration, producing, refining and consumption technologies that will enable efficient and environmentally acceptable use of fossil fuels, he said.

Meeting global energy demand will require continued investment in a diverse array of nontraditional renewable energies. While nontraditional fuels account for a minute part of the total energy mix, there are opportunities for investors to research and develop nontraditional energy for specific uses.

Al-Othman highlighted the GCC’s role: Not only does the GCC provide the world with reliable access to fossil fuels to enable growth, it stimulates the economy through consistent investments in capital projects and research. Al-Othman cited Saudi Aramco’s and other GCC energy producers’ investments as well as the significant growth of GCC-based companies with global investments in petrochemicals, communications, construction and real estate.

Al-Othman provided an overview of Saudi Aramco and highlighted the company’s critical success factors as evidence of Saudi Aramco’s global, national and commercial commitments.

When asked by a fellow MIT alumni about how the tide of the global economic crisis can be turned, Al-Othman said, “It is incumbent on banks, financial institutions, and credit agencies to return to their core business of responsible lending, not only at home, but abroad.” He said there are major opportunities in developing and emerging countries with the potential for acceptable, if not significant, returns on investment.

Lenders were encouraged to look past geographic boundaries to stimulate economies where there are opportunities.