Energy waste costs local economy SR135bn annually

Energy waste costs local economy SR135bn annually
Updated 27 August 2014

Energy waste costs local economy SR135bn annually

Energy waste costs local economy SR135bn annually

Although the Kingdom has the largest oil reserves in the world and occupies the fifth place in terms of natural gas reserves, yet according to a report by oil specialist the Kingdom faces many challenges as a result of a number of different factors, including its need to meet the requirements of development.
Oil and gas being non-renewable resources, the Kingdom requires the ideal utilization of these resources to diversify the economic base, provide new sources of income and achieve sustainable progression.
According to the report issued by the Kuwaiti Diplomatic Center, the Kingdom’s annual rate of energy consumption exceeded 5 percent while the economic growth rate reached 4 percent.
The total of energy consumption accumulated to what equals 3.8 million oil barrels per day considering the apparent disparity in consumption rates during different seasons of the year.
Statistics show that rate of consumption will reach 8.4 million oil barrels if the issue is not dealt with properly.
The growth of national energy consumption rate is the highest in the world. The total of energy consumption per individual reached more than 40 oil barrels annually. Energy consumption is mostly in the electricity sector and desalination with 52 percent, and the transport and industrial sector with 21 percent.
The report confirmed that the Kingdom is one among the Middle East countries that need developing new income resources from natural gas the most because what the Kingdom produces daily equals what it consumes at this time.
The report says that the local market highly demands natural gas where many projects await to get a share of it. Natural gas has gained great importance recently in various chemical and manufacturing industries.
Saudi Arabia should expand its production of natural gas and look for solar power generation sources to meet the need of electricity.
The Kingdom needs to search for external sources to import natural gas to meet the needs of the Kingdom, especially from adjacent sources such as Qatar.