Saudi Arabia is world’s energy ‘shock absorber’, says minister Al-Falih

Saudi Energy Minister Khalid Al-Falih on Monday said that the Kingdom was the world’s energy “shock absorber.” (Reuters)
Updated 16 October 2018
0

Saudi Arabia is world’s energy ‘shock absorber’, says minister Al-Falih

  • Al-Falih told an energy event in India that it was time this balancing role was respected and acknowledged by the international community.
  • He added that the Kingdom wanted to continue playing the global balancing role that it currently plays.

RIYADH: Saudi Energy Minister Khalid Al-Falih on Monday said that the Kingdom was the world’s energy “shock absorber” and pledged to continue to offer a cushion to global supply interruptions.
But he also warned that it was time that this balancing role was respected and acknowledged by the international community.
His remarks come amid concerns among energy-importing nations about the recent rise in the oil price and increased pressure from the US for the Kingdom to boost production.
“We could have another unanticipated, unplanned disruption. We’ve seen Libya, we’ve seen Nigeria, we’ve seen Venezuela and we have sanctions on Iran. These supply disruptions need a shock absorber,” Al-Falih told the CERAWeek event by IHS Markit.
“The shock absorber has been, to a large part, Saudi Arabia. We have invested tens of billions of dollars to build the spare capacity which has been two to three million barrels over the years.
“It has been like a spinning reserve in an electricity system waiting to step in if there is a disruption. We’ve done it out of a sense of responsibility.”
He added that the Kingdom wanted to continue playing that role but also hoped that “the global community of nations will respect and acknowledge what Saudi Arabia has done.
“Once again, we in Saudi Arabia in particular delivered on our role as the world’s cushion against market shocks and today I want to assure our Indian partners and petroleum consumers around the world that we want to continue to support the growth of the global economy,” he said.
In a wide-ranging address, Al-Falih also acknowledged India’s increasingly important status as an energy-consuming nation.With a population that is increasing by some 15 million people per year, India has become a key market for Saudi Arabia and other regional oil exporters.
“India is the world’s fastest- growing energy and oil consuming nation. This trend is playing an important role for driving future demand for oil and gas for decades to come,” he said.
“There can be little doubt that India’s rise as an economic superpower will be accompanied by massive energy demand growth.”
 

FASTFACTS

With a population that is increasing by some 15 million people per year, India has become a key market for Saudi Arabia and other regional oil exporters.


flydubai is considering resuming flights to Syria, but not yet

Updated 29 min 5 sec ago
0

flydubai is considering resuming flights to Syria, but not yet

  • Airline spokesman says there are no plans to resume the service yet
  • Two countries have recently denied similar claims over their embassies in Syria

DUBAI: The United Arab Emirate’s budget airline, flydubai, is considering resuming flights to the Syrian capital, Damascus, but not yet.

None of the Emirati airlines currently serves Syria. 

But there has been speculation that this could soon change.

“flydubai follows the regulations of the General Civil Aviation Authority (GCAA),” the statement read.

“flydubai is considering the option to re-enter the market and will announce any operational updates once the decision is made by the relevant authorities to reinstate the UAE national carriers’ operations to Syria.”

This is the latest in a line of denials over such claims. In the past two weeks both the UK and Russia have denied reports that they were planning to reopen their embassies in the wartorn country.