Saudis 'may run out of oil to export by 2030’
A report by Citigroup has warned that Saudi Arabia could run out of oil to export by 2030, raising fears that oil prices may rise significantly in coming years.
Saudi Arabia consumes 25pc of its oil output and oil accounts for about 50pc of its electricity production. With peak power demand rising by about 8pc per year, the nation is aiming to more than double its power capacity by 2032 through new nuclear and solar instalations.
If power demand were to grow as predicted and there were no change to the electricity fuel supply mix, “we estimate Saudi Arabia would be a net importer of oil by 2030,”.
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This scenario is very plausible. Much of the oil used by the Saudis locally is used in air conditioning. As the population increases and gets increasingly urban, more power will be used for this purpose. To assume that we can get continuing access to cheap oil is irresponsible. We have to take every step to change our oil based economy to a sustainable energy economy.
As a start we will have to reduce our dependency on oil and reduction in the use of oil is a major step. As 60% of the oil we used is in the transportation sector this is where most gains can be made. A move to hybrid vehicle technology fully implemented will reduce oil used by half. This is a proven technology and it works. There should be no reason why it can't be implemented.
_________________________________________________________
This scenario is very plausible. Much of the oil used by the Saudis locally is used in air conditioning. As the population increases and gets increasingly urban, more power will be used for this purpose. To assume that we can get continuing access to cheap oil is irresponsible. We have to take every step to change our oil based economy to a sustainable energy economy.
As a start we will have to reduce our dependency on oil and reduction in the use of oil is a major step. As 60% of the oil we used is in the transportation sector this is where most gains can be made. A move to hybrid vehicle technology fully implemented will reduce oil used by half. This is a proven technology and it works. There should be no reason why it can't be implemented.
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