Energy
From The Report: Saudi Arabia 2019
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Even as Saudi Arabia lays the groundwork for diversification, the energy sector is expected to continue to play a leading role in the economy. It is estimated that oil and gas will account for at least half of the country’s exports to 2040. As the world’s leading oil exporter, the Kingdom plays a key role in meeting global demand and forming international energy policies, as evidenced by the implementation of the Organisation of the Petroleum Exporting Countries (OPEC) supply cuts to stabilise oil prices. In 2019 Saudi Arabia’s energy sector aims to strike a balance between diversifying and strengthening downstream offerings such as petrochemicals, and incorporating renewables into the energy mix. This chapter contains interviews with Abdulkarim Alnujaidi, CEO, National Gas and Industrialisation Company; and Kamal Pharran, CEO, Saudi Tabreed.

Articles from this Chapter

Overview

Up the value chain: Emphasis on downstream activities and diversification put the energy sector on a course for growth
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Even as Saudi Arabia lays the groundwork for diversification, the energy sector is expected to continue to play a leading role in the economy, with estimates oil and gas will account for at least half of the country’s exports to 2040. As the world’s leading oil exporter, the Kingdom plays a key role in meeting global demand and forming international energy policies, as evident by the implementation of the Organisation of the Petroleum Exporting Countries (OPEC) supply cuts to stabilise…

Interview

In the mix: Abdulkarim Alnujaidi, CEO, National Gas and Industrialisation Company, on incremental gains through policy and technology
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Interview:Abdulkarim Alnujaid To what extent can changes in tariffs on Saudi liquefied petroleum gas (LPG) strengthen confidence among investors in hydrocarbons? ABDULKARIM ALNUJAIDI: When there is competition in the market, there is increased efficiency in the system across the value chain, and it allows investors to get a fair return on investment. Higher competition does not necessarily mean that there will be greater downward pressure on prices, but it will help to make every marketable…

Analysis

Converging interests: Potential merger with a petrochemical giant would enable the state-owned oil firm to transition into a global conglomerate
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Although economic diversification and a strengthened private sector are cornerstones of Vision 2030, the blueprint for the transformation and diversification of the country’s economy, corporate consolidation and continued state ownership are features of the planned merger between Saudi Arabia’s most influential corporations. If Saudi Aramco’s acquisition of a 70% stake in publicly listed Saudi Basic Industries Corporation (SABIC) is successful, the combined business will play a dominant…

Analysis

Building a cushion: Investments in spare capacity aim to protect Saudi Arabia from future oil and gas crises
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Even as Saudi Arabia’s oil production reached record levels, with total output hitting 11.1m barrels per day (bpd) in November 2018, the country is boosting levels of investment to ensure there is spare capacity to meet a global supply shock and subsequent increase in prices. According to Khalid Al Falih, the minister of energy, industry and mineral resources, the country will invest $20bn to pump another 1m bpd of crude in order to maintain spare capacity. Emergency Supply The US Energy…

Interview

Staying cool: Kamal Pharran, CEO, Saudi Tabreed, on the expansion of the district cooling industry and its role within the energy mix
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Interview:Kamal Pharran How can district cooling (DC) optimise the Kingdom’s energy and power generation requirements? KAMAL PHARRAN: Air conditioning consumes up to 70% of all energy used in the Kingdom. There is a need for a large-scale, sustainable cooling solution that is energy efficient and cost effective, reduces carbon emissions, and saves millions of oil barrels and billions of riyals. DC is an effective and sustainable solution for energy optimisation. By implementing DC, up to…

Analysis

Going abroad: New terminals to boost energy exports from Saudi Arabia
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Saudi Arabia’s ability to influence global oil prices relies not only on its production capacity but also on its ability to quickly and efficiently export hydrocarbons products to its trading partners. From ports on the Red Sea and the Gulf, Saudi Aramco operates the world’s largest oil and gas export facilities, including the world’s biggest oil terminal at Ras Tanura in the Eastern Province, in addition to the Yanbu port on the Red Sea. New Terminals In October 2018 Saudi Aramco…

Overview

Cheaper and greener: As costs decline, renewable sources are seeing an inexorable rise, particularly among developing economies – Saudi Arabia
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Although the world remains largely dependent upon fossil fuels for power generation, a gradual transition towards renewable sources has been taking place since the 1990s, underpinned by multilateral deals such as the Kyoto Protocol, the Doha Amendment and, more recently, the Paris Agreement. Investment and development in renewable technologies has historically been led by developed countries, however, in recent years the renewable energy industry has been expanding in emerging markets. In 2017 these markets accounted for 63% of new global investment in renewables. Taking the Lead Emerging markets exceeded developed economies in terms…