Oil to remain essential source of global energy: Prince Abdulaziz

Minister of Energy, Prince Abdulaziz bin Salman

Saudi Arabia’s Minister of Energy, Prince Abdulaziz bin Salman, stated that the need for fossil fuels, especially oil and gas, will continue for decades.

Competent authorities and research houses indicated that oil demand will continue to grow in the medium and long term, the minister said in an interview with the Saudi Association for Energy Economics (SAEE).

Oil will continue to be one of the world's most important sources of energy and remain significant to the global economy’s growth, he added.

If demand for oil declines in the long term, Saudi oil, being of a lower cost and with decreased emissions, will maintain continued demand levels for a longer term.

OPEC+ is now more committed and resilient than ever, as it can deal with market challenges and strengthen its role in maintaining stability.

The world's energy industry is currently subject to a clear transformation, and the Kingdom is cooperating with its global partners to lead such a transition, which would contribute to a future of sustainable, stable and clean energy, the minister said.

The Kingdom is focusing on all energy sources, including solar, wind, clean green hydrogen, nuclear and geothermal, to reduce the liquid fuel consumption in power generation and to reach the optimal energy mix.

Saudi Arabia aspires to be a leading producer and exporter of green and clean hydrogen, ensuring its ability to produce it at competitive prices.

The Kingdom plans to build the biggest green hydrogen plant in NEOM mega city with a production capacity of 250,000 tons per year by 2026.

Saudi Arabia increased its current renewable energy capacity by four-fold to 2,800 megawatts (MW) by the end of 2023, with more than 800MW of renewable energy sources still under implementation and about 1,300 MW in various stages of development, Prince Abdulaziz said.

The Kingdom plans to produce an additional 200 MW this year and undertake renewable energy projects to achieve the optimal energy mix by 2030.

Saudi Arabia is working to reduce carbon dioxide emissions and has a liquid fuels program, which relies on converting power, desalination and industrial plants to natural gas or alternative fuels, the minister added.

The Kingdom aims to reduce emissions by 278 million tons per year by 2030, as it is building a huge carbon dioxide capture plant with a capacity of up to 9 million tons per year by 2030 and 44 million tons per year by 2035.