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Volume :43 Issue : 167 2017      Add To Cart                                                                    Download

Enhancement of Energy Conservation and Efficiency in Saudi Arabia.

Auther : Prof. Abdulrahman M. Alsultan

     Saudi Arabia consumption of primary energy sources, namely crude oil and natural gas, is growing at an unsustainable rate. The Kingdom has become the largest consumer of crude oil in the Middle East and the tenth biggest consumer of primary energy in the world. According to International Energy Agency (IEA), Saudi Arabia consumed in 2012 about 32% of its primary energy production. Crude oil consumption accounted for about 67% of the energy used, while natural gas consumption accounted for 33%, which represents the entire natural gas production of the kingdom.

     This extreme high rate of growth of energy consumption is mainly due to excessive subsidies granted to energy users in all sectors of the economy. However, domestic consumption imposed mounting pressure on the country's crude oil export capacity, in a time when the Kingdom is almost entirely dependent on its oil revenues due to its lack of success in diversifying its economy, which clearly indicates that the current policy is unsustainable.
     In this paper, we propose a roadmap that allows for an immediate sizable increase in energy prices in both residential and commercial sectors with proper allowances for users in the form of cash transfer, in order to promote conservation and efficiency of energy use, with least possible opposition to reform and adverse effect on the profitability of institutions and the standards of living.

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May 18, 2017

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