Domestic Energy Consumption in Saudi Arabia: Issues and Challenges
By: Bassam Fattouh, Laura El-Katiri
Crude oil is Saudi Arabia’s single most important natural resource and export commodity, the income from which provides most of the Saudi state’s revenues. Before its ability to export its crude oil, however, Saudi Arabia must satisfy its domestic demand for oil, primarily in the form of fuel for power generation and feedstock for its rapidly growing petrochemicals industry. Domestic energy consumption in the Kingdom has long been marginal, but this is currently changing. With rising levels of industrialisation, particularly in energy-intensive industries, urbanisation and a rapidly growing population, the kingdom is currently experiencing an unprecedented surge in domestic demand for energy. Balancing domestic energy needs against export prospects will thus be key to the country’s future economic growth potential. The project looks at the demand dynamics for energy in Saudi Arabia in recent years, its current situation and its prospects for the years to come. It provides an assessment of current Saudi energy policy, and outlines the challenges ahead for Saudi Arabia’s domestic energy sector and its future export prospects.
Categories / Country and Regional Studies, Current Research, Energy Policy, Oil, Oil & Middle East Programme, Research