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The Kingdom's energy strategy
Published in The Saudi Gazette on 27 - 04 - 2013


Sami Alnuaim
Based on several energy studies, the Kingdom energy demand, which is coming primarily from locally produced oil and gas, will grow from its current level of 4.3 million barrel per day of oil equivalent to reach high record of 6 million barrel per day of oil equivalent and 8 million barrel per day of oil equivalent by 2017 and 2030 respectively. The projected doubling of energy demand by 2030 is due to the expected high population, economic, industrial, and transportation sectors' growth which will require more utilities (electricity & desalinated water) and refined products. This undesired exponential growth in energy demand, if not arrested and well controlled/managed, will not only limit the amount of exported oil that the Saudi Arabia economy depends heavily on, but would require unprecedented financial investments to build new refineries, new power generation and water desalination plants.
If we look at the annual increase rate in the Kingdom's energy demand, we will find that it is higher than the economic growth rate which means that part of it is due to either low energy efficiency and/or low energy intensity. This is in addition to the existing low energy efficiency in the power generation, power transport, and power utilization sectors. Add to that also the low efficiency in the land transportation sectors due to the absence of effective public transport systems between and inside the Kingdom major cities of Mecca, Madinah, Riyadh, Jeddah and Dammam.
Having all that in mind, the need to accelerate the development, approval and implementation of the Kingdom national energy strategy is not only a must but is also a top national priority.
It is important to mention here that the establishment of King Abdulla City of Nuclear and Renewable Energy to address the Kingdom's energy need specially in the electricity generation and water desalination, using renewable and nuclear energy sources, is definitely a positive step toward developing such a strategy. Also the many efforts currently undertaken by several government and private organizations to address solar energy utilization, public transport systems and energy deficiency challenges are highly commended and will definitely serve such strategy.
The important thing that needs to be done as quickly as possible is the integration of all these efforts under one umbrella called the National Energy Strategy; with the strategic objectives of arresting such undesired energy demand and addressing the low energy efficiency and intensity by utilizing nuclear and renewable resources, implementing and enforcing very effective energy efficiency regulations.
The effective implementation of this strategy will not only arrest such undesired energy demand growth but may avail more oil for export and will definitely avail more new jobs for Saudis that will further improve the economy.
— Dr. Sami Alnuaim is a Saudi writer and can be reached at Twitter:@neaimsa. His articles can also be followed at www.saudienergy.net


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