Aramco CEO believes realistic green policies are beneficial for the U.S., with Trump set to return to the White House.

• Saudi Aramco CEO Amin Nasser stated that it is beneficial for the U.S. industry to have more realistic standards in order to achieve their goals regarding hydrocarbons.
• Aramco has consistently supported a strategy for global energy transition that continues to use fossil fuels, in order to prevent supply disruptions.
• U.S. President-elect Donald Trump's climate policies are now in focus.
• The possibility of the Republican politician withdrawing Washington from the 2015 Paris Agreement has caused dismay among activists.

The CEO of the world's largest oil producer stated on Tuesday that realistic green transition standards will benefit the U.S. energy industry, as the White House prepares to welcome President-elect Donald Trump in January.

Saudi Aramco CEO Amin Nasser stated that he believes policy makers will assist the industry in expanding with their policies and standards. He added that it is beneficial for the U.S. energy industry to have more realistic standards to achieve their goals.

During the Saudi Green Initiative Forum in Riyadh, CNBC's Dan Murphy moderated a panel on which he spoke.

Riyadh, through its state-owned oil company Aramco, has consistently supported a strategy for the global energy transition that involves the continued use of fossil fuels, while also acknowledging the growth of renewable energy sources. However, some critics have raised doubts about Riyadh's dedication to combating climate change.

By 2050, Aramco aims to reduce its Scope 1 and Scope 2 greenhouse gas emissions to zero across its assets. The company had previously planned to increase its maximum oil production capacity, but paused those plans earlier this year. Scope 1 and 2 emissions include direct and indirect emissions from sources that a company owns and controls or from its purchases and uses.

"Nasser stated on Tuesday that while transition and policy makers aim for a rapid transition, they often put forth mandates or policies, but these will not address the economic issues."

Despite the projected decline in production costs of hydrogen as a renewable energy source, questions remain about its economic viability for mass consumption. Trump has previously criticized hydrogen-fueled vehicles, stating that they are prone to explosions.

The focus is now on the broader climate policies of the U.S. president-elect, with activists concerned about the possibility of the Republican politician withdrawing Washington from the 2015 Paris Agreement. This would be a reversal of the pro-climate action administration of outgoing President Joe Biden, whose legacy bills - the Inflation Reduction Act and the Bipartisan Infrastructure Law - support green projects.

Jennifer Granholm, the current U.S. Energy Secretary, stated in an interview with CNBC last month that if Trump were to reverse these initiatives, it would have a negative impact on jobs in areas controlled by the Republican Party and constitute "political malpractice."

Nasser stated on Tuesday that he believes the U.S. will prioritize their own interests in expanding and speeding up their industry during their transition plans.

Trump prioritized fossil fuels in his campaign, promising to expedite federal drilling permits and leases to boost American oil and natural gas production. In November, he appointed oil and gas industry veteran Chris Wright to lead the Department of Energy.

In 2023, U.S. oil production reached a record high of 12.9 million barrels per day during Biden's presidency, according to the U.S. Energy Information Administration.