Saudi Arabia faces several challenges because of the demands of its economic development, although the Kingdom has the biggest oil reserves and ranks fifth in the world natural gas reserves, The Peninsula Times stated citing a latest report by Kuwait Diplomatic Center.
As Oil and gas are non-renewable energy sources, this requires optimal use of resources in order to diversify its economic basis and provide the necessary income to realize economic sustainability.
The report stated that the annual average population growth in the Kingdom calls for the consumption of 5% energy increase, while the average economic growth is only at 4% and that the gross energy consumption is nearly 3.8 million barrels a day.
The report added that the local market’s needs for natural gas is continuously increasing as many of the projects are waiting for their share as many industrial and chemical ventures have come to rely on gas for its energy supplies.
Thus, Saudi Arabia has two choices: The first is the expansion in gas production which includes exploration for new sources including solar energy. The second, the aggressive search for outside sources to import to meet national needs; Qatar could be a potential source of national energy needs.
The Kingdom uses gas to produce energy and thus has to be part of a “general united Gulf strategy” to carry and distribute the energy between Gulf countries.