Focusing Only on Renewables a ‘Fatal Mistake’: Saudi Energy Minister

The Saudi energy minister said on Sunday that focusing only on renewable power sources was a mistake and that the world may not be able to produce all the energy needed for economic recovery from the coronavirus pandemic.

“The pandemic and the recovery underway have taught us the value of caution,” said Prince Abdulaziz bin Salman during an energy event in Riyadh. The conference was also attended by the United Arab Emirates (UAE) and Bahraini energy ministers, the Iraqi and Kuwaiti oil ministers and Egypt’s petroleum minister.

“Caution, a word that I know some people hate me for, but… I will continue being cautious, and (mindful of) the need to retain flexibility in our strategy and adopt a long-term perspective,” Prince Abdulaziz said.

He added that a lack of investments had caused energy prices to rise, but that Saudi Arabia was continuing to invest in production capacity.

As the world’s biggest oil exporter, Saudi Arabia produces more than 9 million barrels a day, and has 15% of the entire world’s oil reserves. State-owned oil giant Saudi Aramco recently told TIME magazine that it will begin pumping far more oil, increasing its grip on global supplies, as Western countries and international energy companies try to curb fossil fuels.

Abdulaziz insisted the Kingdom can roll out multibillion-dollar solar, wind, and hydrogen projects at home, even while remaining a giant oil producer. Choosing between the two is absurd, he said, and those who predict the inevitable decline of fossil fuel use are “living in a fantasy land.”

With regard to sustainability, the minister said it is a natural result of the circular carbon economy framework that Saudi Arabia advocates and enjoyed the support of the leaders of G20. According to him, the energy transition is accelerating, but focusing on only certain elements of this transformation such as renewable or alternative energy would be another fatal mistake.

Abdulaziz indicated that energy security requires the world continue to use all energy options, including hydrocarbon resources, which have driven economic development for centuries, but at the heart of this strategy lies a challenge related to how to supply hydrocarbon fuels and at the same time reduce greenhouse gas emissions. “Technology is an essential pillar to meet this challenge,” he noted.

The minister reiterated that innovative technology will be essential in implementing the Green Saudi Initiative, which aspires to meet half of the domestic electricity need from renewable energy sources by 2030 and reach zero carbon emissions by 2060.