JEDDAH, 5 July 2005 — The Kingdom needs to plan for new income alternatives for the future. Dr. Asem Arab, director general of Economic and Administrative Studies and member of the Saudi National Committee in the International Council, believes that despite having the largest petroleum reserves in the world, Saudi Arabia needs to develop alternative energy sources for income.
“Saudi Arabia is the number one country in terms of oil reserves. Its reserves are enough for 70 years,” he said. He confirmed that the Kingdom had about 261 billion barrels of oil which is one quarter of world reserves. He explained that because the Kingdom is going through economic and industrial improvements, searching for income alternatives is currently not necessary. “The discovery of the new field in the Eastern Province will increase Saudi Arabia’s reserves,” he acknowledged.
Alternative energy sources to generate income are being considered. Natural gas is at the top of the list of competitors to replace petrol, according to Dr. Arab. Nuclear energy should be taken into consideration as well but because it is a high-risk alternative, nuclear planning was postponed. The options remaining are solar, wind and water energies, he said.
The extensive Empty Quarter has the potential of providing solar power for the Kingdom. Many solar projects have begun in the Empty Quarter, including desalination plants and green house air-conditioning systems. King Abdul Aziz City for Science & Technology has also used solar energy, notably in the desalination project in Yanbu.
Dr. Arab thought that the projects were worth the investment. “The profit of a project that could replace petrol - for example gas, nuclear, solar, wind or water energies - is at least 25 percent. Additionally, because it is a new industrial field we need to cooperate with experts. They will help our employees do their best and avoid loss.”
Dr. Arab concluded that though the Kingdom was rich in some alternatives to petrol, working on a new project would take from five to ten years. He pointed out that solar and water energy would be the best choices with the least dangerous side effects to replace petrol.
