Saudi Arabia preparing for oil demand to peak (diversifying its economic base)

[OKIsItJustMe]

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/saudi-arabia-preparing-for-oil-demand-to-peak/article1468976/

Saudi Arabia preparing for oil demand to peak

Top energy official says his country is preparing for that eventuality by diversifying its economic base

TAREK EL-TABLAWY

JEDDAH, Saudi Arabia — The Associated Press Published on Monday, Feb. 15, 2010 5:01PM EST

A top Saudi energy official expressed serious concern Monday that world oil demand could peak in the next decade and said his country was preparing for that eventuality by diversifying its economic base.

Mohammed al-Sabban, lead climate talks negotiator, said the country with the world's largest proven reserves of conventional crude is working to become the top exporter of energy, including alternative forms such as solar power.

Saudi Arabia was among the most vocal opponents of proposals during the climate change talks in Copenhagen. And al-Sabban criticized what he described as efforts by developed nations to adopt policies biased against oil producers through the imposition of taxes on refined petroleum products while offering huge subsidies for coal — a key industry for the United States.

Al-Sabban said the potential that world oil demand had peaked, or would peak soon, was an “alarm that we need to take more seriously” as Saudi charts a course for greater economic diversification.

...

[marmar]

1. Or perhaps they're expecting oil PRODUCTION to peak......

..... under the guise of waiting for oil demand to peak.

[earthside]

2. ... Has 'Peaked' ...

... read Matt Simmons' "Twilight in the Desert."

[FBaggins]

3. Simmons was talking about a supply peak

And he's been wrong more than once.

This article is talking about a demand peak.

[OKIsItJustMe]

4. Yes, it says it's about demand

However, do you think Saudi Arabia is really worried about a demand peak?

Either peak would require diversification.

http://www.constructionweekonline.com/article-7601-saudi-builds-solar-desal-plant/

Saudi builds solar desal plant

by Gerhard Hope on Feb 14, 2010

Saudi Arabia has begun building the first solar-powered water desalination plant, the first step in a three-part program to introduce solar energy into the Kingdom.

The programme, launched by the King Abdulaziz City for Science and Technology (KACST), aims to help stabilise future power and water supplies inside Saudi Arabia through the creation of solar-powered desalination facilities.

Saudi Arabia produces 18% of the world’s desalinated water. By building water desalination plants that run on solar energy, the Kingdom can reduce operational costs and, in turn, reduce consumer costs.

“The solar energy programme will reduce the cost of producing desalinated water and of generating power for use in the Kingdom, an oil-dependent nation, which has launched a national energy efficiency programme,” said Prince Dr. Turki bin Saud bin Mohammad, KACST Vice President for Research Institutes.

Saudi Arabia is a prime location to harness solar energy due to its year-round sunshine. The sun emits about 7 000 watts of energy per square metre over an average of 12 hours every day. KACST and IBM have developed a research centre to determine how best to harness this solar energy.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=115&topic_id=230430&mesg_id=230430

[FBaggins]

5. I think it's plausible, yes.

It happened to them the last time they let oil prices run away (followed by a deep recession), and it's one of th reasons that they were unwilling to support other OPEC members who wanted to seriously cut production.

[OKIsItJustMe]

7. EIA Projections

http://www.eia.doe.gov/oiaf/ieo/world.html

http://www.eia.doe.gov/oiaf/ieo/excel/figure_14data.xls">Figure Data

[FBaggins]

8. Got a copy of that from the late 70s? n/t

[FreakinDJ]

6. How is that "Uneducated Work Force" working out for them

put all their money in Cars and Palaces rather then educate the people

[Terry in Austin]

9. The "demand peak"

This has struck me all along as some deft verbal jockeying by peak oil denialists. It's classic, Luntz-worthy framing that kicks up the FUD and distracts from serious discussion.

YMMV.