Aramco 2025: Oil Legacy with Measured Transition Commitments.
At the energy crossroads, Aramco ties fossil credibility to transition projects and targets.
Legacy as Identity Anchor
Aramco’s brand power is inseparable from its position as the world’s largest crude producer, central to Saudi Arabia’s economy and the security of global energy supply.
In 2025, that legacy still shapes its identity: fossil dominance is not abandoned but reframed, anchoring credibility even as the company faces intensifying scrutiny to align with the energy transition.
Transition Metrics Define Credibility
Aramco has pledged net-zero Scope 1 and Scope 2 emissions by 2050 across its wholly owned and operated assets . In 2024, it reduced upstream methane emissions by 11.4% year-on-year, while methane intensity fell 0.01 percentage point to 0.04% .
In the same year, it shipped five third-party verified carbon-offset crude cargoes averaging 7.48 kg CO₂e per boe. Aramco also set an interim upstream carbon intensity target of 8.6 kg CO₂e/boe by 2030, announced in May 2025, to demonstrate measurable near-term progress .
These explicit milestones reinforce that transition commitments are becoming part of the brand’s external credibility.
Technology Projects Reinforce Narrative
Execution strengthens narrative. In December 2024, Aramco, SLB, and Linde signed an agreement to build a carbon capture and storage (CCS) hub in Jubail, targeting up to 9 million metric tons of CO₂ annually by end-2027 .
In March 2025, it launched Saudi Arabia’s first direct air capture (DAC) pilot with Siemens Energy, a unit capturing around 12 tons of CO₂ per year as a proof-of-concept for scaling .
By grounding its transition story in concrete projects, Aramco aims to add substance to what might otherwise be seen as abstract pledges.
Tensions in Brand Positioning
Trade-offs complicate this positioning. At CERAWeek in March 2025, Aramco’s CEO dismissed rapid fossil phase-outs as “fantasy,” underscoring commitment to continued oil investment . At the same time, sustainability metrics show mixed performance: energy intensity rose 5.9% in 2024 vs. 2023 to 162.9 thousand Btu/boe, and flaring intensity increased from 5.64 to 6.07 scf/boe .
These results highlight contradictions: progress in methane reduction and carbon capture coexists with setbacks in other environmental indicators, leaving Aramco’s identity suspended between continuity and change.
Bottom Line
Aramco’s brand in 2025 is forged at the crossroads of oil legacy and transition signals. Fossil dominance still underpins its authority, but quantified milestones, 11.4% methane cut in 2024, 8.6 kg CO₂e/boe target by 2030, Jubail CCS hub (9 mtpa by 2027), and the March 2025 DAC pilot, are woven into its identity narrative.
The brand’s trajectory will depend on whether these proof points are read as authentic progress or as insufficient offsets.
That perception will decide if Aramco evolves into a transition leader or remains constrained by its fossil foundation.
