Ed Webb

Saudi crude export capacity would fall by about 3 million bpd to under 7 million bpd by 2028 unless domestic energy demand growth is checked

Saudi Arabia currently relies on oil revenues for about 80 percent of its government spending

Plans to add renewable power would help maintain fiscal balance for another two or three years, but that’s all

Saudi Arabia hopes to buy itself some time with major energy conservation efforts. Saudi Aramco is pursuing an initiative in cooperation with the Kingdom’s utilities and business sector to generate massive energy savings on as rapid a timetable as possible. This initiative includes moves into renewable power sources like solar and wind, plus efforts to slash energy waste and duplication and create a business culture sensitive to energy efficiency

Chatham House believes “huge economic, social and environmental gains from energy conservation are possible in Saudi Arabia” but it cautions that the longstanding Saudi tradition of low energy prices and the Kingdom’s sluggish bureaucracy pose “challenges” to implementing needed pricing and regulatory reforms.

Saudi Arabia is aiming to generate about 10 percent of its power needs from solar energy by the year 2020