Aramco Head in Seoul

Saudi Aramco CEO Abdallah S. Jum'ah gets honorary doctorate from Hankuk University of Foreign Studies


Saudi Aramco President & CEO Abdallah S. Jum'ah spoke at the Hankuk University of Foreign Studies (HUFS), where he was awarded an honorary doctorate by the prestigious institution for his work over many years to strengthen economic ties between Saudi Aramco and Korean businesses, and for his contribution to stability in the global oil market.
Aramco owns AOC, which is a a major shareholder of S-Oil. The HUFS was selected by the Korean government as one of the recipients of a special grant for qualified institutions to train international experts. Accepting the honorary doctorate, President Jum'ah said that it is being awarded to him as the head of Saudi Aramco, rather than in his personal capacity, and for this reason he would like to convey his gratitude to all Saudi Aramco employees for their efforts in making the company so successful, both now and in the past.
At the event, Jum'ah addressed an audience of faculty and students from the university on the topic "Achieving Energy Security: Toward a More Holistic Approach."He said that there are a number of factors that affect the security of energy supplies other than engineering, financial or technological concerns - and they fall primarily in the realm of national and international policies that, although unrelated to energy, nonetheless impact the industry.
One reason the industry is affected by so many factors, Jum'ah noted, is its centrality to modern life. "It is difficult to imagine a day without petroleum and petroleum-related products,"Jum'ah said, "from the fuel in our cars, trucks and airplanes, to the fertilizers we use to grow our food, the pharmaceuticals we utilize to treat disease, and the plastics and other petroleum products which enable us to live safer, healthier, more dynamic and more connected lives."It is no wonder then, that the petroleum industry is impacted by such a wide variety of factors. "Our current energy landscape has been profoundly shaped by sometimes shortsighted actions and policies, in many cases because their implications on energy were ignored, underappreciated or misunderstood,"Jum'ah contended.
For example, he said, total conventional energy resources - coal, crude oil, natural gas, and others - are adequate to meet even strong demand growth for many decades to come. "Out not all of these energy resources can be utilized,"Jum'ah said, "because of restrictions imposed by policies designed to achieve other economic, political or environmental objectives."As examples, Jum'ah cited restrictions on exploration activities, permitting requirements that impact vital infrastructure such as refineries and pipelines, extra-territorial investment sanctions on major producers, and extraordinary taxes on refined products, among others.
Ignoring political, economic and environmental considerations would be just as problematic as underestimating their impact on energy supplies, Jum'ah said. "Therefore, I would argue that the world must take a more holistic view of energy issues,"he added, "and expand the circle of analysis by considering the impact of any economic or political course of action on energy supplies and security."Jum'ah then turned to the issue of regional and global politics and their impact on energy supplies and energy security, the oil sector in particular. Jum'ah noted that there are many factors working in favor of the oil industry - plentiful supplies for decades to come, a large amount of capital available for investment, and constantly improving technology to overcome industry challenges. "But when it comes to the political aspect of the energy security equation, things become frustratingly complex,"Jum'ah said.
He noted the wide range of political tensions that impact the current energy environment. "For example, political issues related to the Middle East and its oil resources have a direct connection to the energy security and economic wellbeing of countries as diverse as Korea, Japan, China, and the United States, as well as European nations."This, in turn, has led to the emergence of more competition in the area of hydrocarbon investment, as countries attempt to secure supplies, thus applying further pressure on oil markets.
Jum'ah concluded that energy supply and security, political and economic considerations, and environmental and public policy issues cannot be addressed in isolation from one another, and called for an inclusive, holistic approach to find cooperative solutions to energy supply challenges. "Instead of working at cross purposes, we should involve all stakeholders - producers, consumers and governments - in order to develop pragmatic future solutions and strategies,"he said. "Then, and only then, can we develop an energy future which protects the planet while satisfying the needs of its people, and which creates not only greater prosperity, but also greater opportunity."After concluding his business-related remarks, Jum'ah then took the opportunity to address the audience in Arabic, recognizing that many of the attendees are studying Arabic as part of their foreign affairs curriculum. Jum'ah said that Saudi Aramco's role in Korea is for the long-term, and based on a true partnership. "I was here when Saudi Aramco started to lay the groundwork for its presence in Korea,"he said. " lived through the birth and delivery of our small joint venture [with S-Oil] and felt extremely happy to watch this nascent business grow into one of the most successful Asian corporations."Saudi Aramco holds an equity stake in S-Oil.
Jum'ah noted that his dozens of visits to Korea over the past 15 years have built not only business bridges, but a personal affinity for the land and its people. "thanks to these visits, I have fallen in love with the country, its people, civilization, history, heritage, language, cuisine and music,"he said.
Jum'ah concluded his remarks with a note of gratitude to the Hankuk University of Foreign Studies and its faculty for the honorary doctorate degree. nw

 

Saudi Aramco President & CEO Abdallah S. Jum'ah, left, is all smiles holding his honorary doctorate degree presented to him by Hankuk University of Foreign Studies in Seoul May 23. In the center is Chancellor Park Chul of HUFS.


Copyright(c) 2003 Newsworld All rights reserved. news@newsworld.co.kr
3Fl, 292-47, Shindang 6-dong, Chung-gu, Seoul, Korea 100-456
Tel : 82-2-2235-6114 / Fax : 82-2-2235-0799