Saudi Arabia is best known for their significant oil reserves and subsequent wealth from oil exports. However, recent criticisms declared that the country is not as oil-rich today as Saudi Arabia has let on. According to Wikileaks, Saudi Arabia has 300 billion barrels less oil than they have stated. The country, while still plentiful when it comes to oil, may now be considering just how long their reserves will last.
Now Saudi Arabia is wanting to enter the renewable energy field with gusto and decrease their dependence upon oil. However, the country is planning to save their stores of oil in order to export to other countries, countries which also need to decrease dependence upon oil. Currently Saudi Arabia exports approximately 9 million barrels of oil per day.
Saudi Arabia’s deputy minister for electricity, Saleh Al-Awaji, stated: “Fuel supply is one of the major challenges facing the power sector and the nation. The policy is to work intensely on saving energy and making sure every barrel of oil that can be saved is, and is made available for export.”
Currently Saudi Arabia consumes 2.4 million barrels of oil a day and projected consumption is 8.3 million barrels by 2028. While these numbers may seem high, it should be taken into consideration that the top consumer of oil in the world, the United States, consumes 18.8 million barrels a day.
Saudi Arabia hopes to decrease their dependence upon oil by diversifying into renewable energies, including solar and nuclear. Recently the country requested $100 billion from the United Nation’s climate change fund in order to assist in developing their renewable sector. The first major project for the country will be a 3.5 megawatt solar array, expected to be completed by fall of this year. The overall plan for the money contributed by the UN has not yet been announced, however, the climate in the country lends itself well to solar and is expected to be a major energy for the country.
