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Page added on June 11, 2011
Electric Company Of Saudi Arabia Warns Country May Run Out Of Oil By 2030
Sometimes we wish the oil minister of former OPEC member Saudi Arabia (“we can supply any amount of oil”), Wikileaks (“Saudi Said To Have Overstated Crude Oil Reserves By 300 Billion Barrels or 40%“), and now Saudi Arabia’s very own electricity company would coordinate their story. In a little noticed comment by Abdel Salam al-Yamani, head of the Saudi Electricity Company, in Al Mashka, which so far has been captured by only El Economista magazine, has provided the most recent insider confirmation of peak oil: a very troubling development for those who still naively believe that Saudi Arabia has any marginal boosting capacity, or more importantly, is willing to risk pumping more than possible. Yet, caught between a revolutionary rock and various other cartel nut cases, Saudi will soon be forced to sell as much oil as it can in order to placate it increasingly angry population with ever greater and ever more frequent “gifts” buying the transitory admiration of its people.
Since the long term impacts of confirmed peak oil are rather obvious to everyone, we will merely recreate the relevant soundbites from El Economista:
The electricity company of Saudi Arabia has set off alarms to warn that oil in this country could be depleted by 2030 if left unchecked domestic consumption. According to a report of this company, it is estimated between 2.5 and 3.4 million barrels a day.
The report, published in the magazine Al Mashka of the company itself says that the increase in domestic consumption of oil is one of the main challenges facing the country, mainly because oil accounts for 80% of national income.
Abdel Salam al-Yamani, head of the Saudi Electricity Company also warned of the consequences for citizens to ignore the calls to save electricity and water, and has advised that they depend more on solar energy.
Courtesy of Finansakrobat
6 Comments on "Electric Company Of Saudi Arabia Warns Country May Run Out Of Oil By 2030"
notbob on Sat, 11th Jun 2011 1:11 am
I think it’s been well known that Saudi Arabia’s internal growth is threatening oil exports. This article says nothing new to that effect. The electric company is saying that growing demand will cut into exports and threaten the national economy since oil counts for so much in their economy. It doesn’t say anything really about depleting their reserves by 2030.
Stephen Lawrence, Cambridge, UK on Sat, 11th Jun 2011 3:37 am
When a resource (oil) gets scarce, the money from higher prices must be used to buy somthing. Unless all the money goes to govt, and then the govt buys military hardware, and does not let any money get to its population (unlikely), the population will start spending it – and they will choose energy.
So as a resource gets scarce, the people to whom the resource ‘belongs’ must be paid back with a greater share of that resource. There’s no other way!
The less oil there is left, the less can be exported….
Anthony on Sat, 11th Jun 2011 8:18 am
I think 2030 is pretty optimistic….
Bloomer on Sat, 11th Jun 2011 11:58 am
Hence why the Saudis are so keen to build nuclear reactors.
Kenz300 on Sat, 11th Jun 2011 11:19 pm
The Saudi’s are also looking at building solar energy plants to generate energy for both internal use and for export of electricity.
ian on Sun, 12th Jun 2011 8:19 am
The use of oil in the global economy is so pervasive that the price of everything depends on the price of oil. ie,oil is the “gold standard”. Once renewable energy, nuclear power and electric transportation become wide spread then the price of oil will become decoupled from the price of basic staples and commodities and the oil price will able to rise uncontrollably. I think renewables will make oil expensive. The Saudis and global oil companies should be promoting renewables in a big way to make their product more valuable and profitable.