Saudi's Hidden Energy Crisis

Now it gets interesting/terrifying...:

Middle East and North Africa Programme Analysis The Energy, Environment and Development Programme at Chatham House has published a new report on energy security in Saudi Arabia:     Burning Oil to Keep Cool: The Hidden Energy Crisis in Saudi Arabia Programme Report by Glada Lahn and Paul Stevens, December 2011. Key points: Domestic energy demand growth in Saudi Arabia is cause for international concern. If it continues at the current rate, it could jeopardize the country's ability to stabilize world oil markets. Given Saudi Arabia's level of dependence on oil revenues, excessive consumption will cause economic and social pressures long before oil exports end – within a decade if nothing changes. Current policies are not enough. Planned additions of renewable power supply would help maintain the fiscal balance for an additional two to three years; given the lead times nuclear power would have little or no impact. Huge economic, social and environmental gains from energy conservation are possible in Saudi Arabia but the long period of low prices and the bureaucratic structure of the state present several challenges to implementing effective pricing policy and regulatory measures. Fear of confronting these challenges has deterred meaningful government action in the past. However, some immediate, targeted investments could produce effective results even in the absence of price reforms. Raising prices is politically difficult but international experience can help in preparing society through a range of efficiency, educational and infrastructure adaptation measures to smooth the transition. This must be done within a package of measures that increase private-sector employment for Saudi nationals. Read the full report >> Further Resources       Future Trends in the GCC Countries | MENA Programme Project We are starting a new stream of work focusing on future scenarios for the political and economic development of the GCC states, and this webpage brings together our most recent analysis and reports on the region.       Keeping it in the family | Article for Foreign Policy by Jane Kinninmont | November 2011 Senior Research Fellow Jane Kinninmont explores the dynamics of the Saudi royal succession. Investing in Renewable Energy in the MENA Region: Financier Perspectives | Energy, Environment and Development Programme Working Paper by Kirsty Hamilton | June 2011 This paper finds that there is significant interest in investing in renewable energy in the MENA region, but financiers would like more clarity on policy from regional governments. The Political Outlook for Saudi Arabia | MENA Programme Workshop Report | May 2011 This report summarises discussions which covered both Saudi domestic politics and Saudi Arabia's position in a changing Middle East. About the Middle East and North Africa Programme The Middle East and North Africa Programme carries out in-depth research and convenes discussions on the politics, societies, economics and security of the region. View more information on: Our programme team and experts Events on the MENA region Papers and reports Resources in Arabic Support and sponsorship For further information about the MENA Programme, please feel free to contact Kate Nevens on knevens@chathamhouse.org or +44 (0)20 7314 3624. The MENA Programme on Twitter Follow our official MENAP account at @CH_MENAP, as well as our Yemen and Egypt projects @Yemen_Forum and @EgyptDialogue

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