(Adds more comment from CEO, background)

By Arathy Somasekhar

HOUSTON, March 18 (Reuters) -

Global oil demand will not peak for some time so policy

makers need to ensure sufficient investment in oil and gas to

meet consumption and abandon the fantasy of phasing out the

fossil fuels, Saudi Aramco CEO Amin Nasser said on

Monday.

The head of the world's largest energy company urged a

re-set of global energy transition plans in remarks to oil and

gas executives at the CERAWeek conference in Houston.

Oil demand will reach a new record of 104 million

barrels per day (bpd) in 2024, Nasser said. Despite growing

investment, alternative energy has yet to displace hydrocarbons

at scale, Nasser said.

"All this strengthens the view that peak oil and gas is

unlikely for some time to come, let alone 2030," he said.

Rising demand from developing economies could feed oil

demand growth through 2045, he said.

This forecast for long-term demand growth is in line

with forecasts from the Organization of the Petroleum Exporting

Countries and in contrast to the 2030 forecast for peak demand

from the West's energy watchdog, the International Energy

Agency.

The

two are far apart

on both short-term and long-term demand forecasts, in part

because of their contrasting views on the energy transition.

Reducing greenhouse gas emissions from hydrocarbons through

carbon capture and other technologies achieves better results

than alternative energies, Nasser said.

New energy sources and technologies should only be

introduced when they are genuinely ready, and economically

competitive, he added.

Shipping disruption in the Red Sea due to attacks by Yemen's

Houthi group had "made a tight situation tighter" in shipping

markets, he said.

The Iran-aligned group has been attacking ships in the

Red Sea and Gulf of Aden since November in what they say is a

campaign of solidarity with Palestinians during

Israel's war with Hamas

in Gaza.

Oil is taking 2-3 weeks longer to reach its destination

as vessels are rerouted to avoid the area, he added.

The shipping issues had little impact on Saudi Aramco,

he said, in part because of its East West pipeline. That

pipeline allows Aramco to load ships north of the area that the

Houthis have attacked.

Europe has become a bigger market for Aramco because of

the Red Sea shipping issues, he said.

Nasser reiterated that Aramco has 3 million bpd of spare

capacity to meet any unexpected disruptions in global supply.