This page has been archived and commenting is disabled.
Guest Post: Amid Push For Renewable Energy, Saudi Arabia Cautiously Turns Over Green Leaf
Submitted by www.oilprice.com
Amid Push For Renewable Energy, Saudi Arabia Cautiously Turns Over Green Leaf
The promise of green energy has intrigued the Middle East, where concern about future reserves runs deep, but Saudi Arabia's recent plan for a multibillion-dollar investment in traditional oil projects underscores lingering concern about betting on renewables.
Riyadh plans to spend $170 billon over the next five years on energy and oil refining efforts; the country's state-owned oil company, Saudi Aramco, will bankroll little more than half this endeavor, according to the Saudi Gazette. The energy giant called it unrealistic for Saudi Arabia to plow into alternative energy sources when the No. 1 cash crop of oil has built its wealth, the report states.
"I don’t think that’s surprising,” said Eurasia Group energy analyst Will Pearson of the guarded approach, adding that Saudi Aramco has long been hesitant given the state’s status as the world’s leading oil producer.
Without a “huge, revolution[ary], game-changing technology,” an abrupt shift in the “fuel mix” is doubtful, said Pearson, who puts more stock in green technologies gradually scooping up market share. Given the abundance of other resources, the Saudi government is more likely to make such nascent energy sources a smaller part of its overall budget, he argued.
Despite trepidation, the Gulf country has been drawn to the "relatively unproven technologies" of biofuels and electric vehicles even though, for the most part, "people are going to be dependent on the oil sector for transport," Pearson told OilPrice.com. Given its access to sunlight, Saudi Arabia has great potential to become a major solar player but has not made “too much concrete progress so far,” he said.
Saudi Arabia is also taking aim at clean water. In a nation where water is scarce, Riyadh plans to build a desalination plant to deliver cheaper, cleaner water.
Yet growing pains are bound to accompany this push away from traditional oil and gas, analysts warn.
“You have to come up with the right regulatory regime,” Pearson said. While some companies are already doing “quite well” in this young energy category, traditional fossil fuels are still a less costly option, he said. An international carbon price would help but “I don’t think there’s been a lot of progress on that,” he said.
The bottom line is that the new industry has to beat traditional hydrocarbons, said Molly Williamson, a consultant and scholar at the Middle East Institute in Washington focused on Middle East and energy issues. “If you develop an alternative energy source that is effective, that is available, that is reliable, but it is the equivalent of $12 a gallon for gasoline, it’s not going to make it,” she charged.
Though it’s uncertain how much these new technologies will cost, “what we know is it isn’t cheap,” Williamson told OilPrice.com. “You’re looking at a long-term projection of unknowable cost. The people that can do that now are the people who can afford it.” This includes not just Gulf nations, she explained, but countries with hard-currency reserves.
What is promising is that many Gulf Cooperation Council countries, as well as oil-producing regions in the Middle East and North Africa, are actually announcing “targets for renewables,” investigating financing mechanisms, and laying the groundwork to bring new types of energy “into the fuel mix,” said Pearson.
The eager drive toward alternative energy is, in part, a bid to meet two of the fastest-growing markets in the world: China and India, Williamson maintained. “The United States has been saying on the record, publicly, repeatedly, we don’t want foreign oil,” she explained. Gulf nations now “see an alternative market, and that market overwhelmingly is Asia.”
In the oil-producing pockets of the Middle East and Africa, there is “growing recognition” that developing wind and solar power can help free up natural gas or oil for export, which is more lucrative, added Pearson.
The Middle East has dabbled in new brands of energy for a decade, but the “incredible run-up” that took place in 2007 to 2008 on the heels of the economic crisis made it “more dramatic,” said Williamson.
Apart from Saudi Arabia, Egypt, which is facing dwindling oil and gas reserves, announced it would host a Dutch factory that will play a key part in its bid to create solar energy.
And energy importer Morocco is planning to embark on a large solar energy project with a $9-billion price tag that is expected to produce about 40 percent of the country’s power by the year 2020. The North African state also has a windmill farm near the city of Tangiers.
But the United Arab Emirates has articulated the most avant-garde vision on new energy with the Masdar Initiative, said Williamson, referring to the effort to usher in renewable energy solutions and clean technologies. “They want to be the first carbon emissions-free country on the planet,” she explained. “They have come up with a very ambitious plan and they have already financed it fully.”
This makes the U.A.E., by far, “ahead of the game” compared to its neighbours in protecting itself against the “shocks and volatility” of traditional markets like the United States, Williamson said.
Full article at: http://oilprice.com/Geo-Politics/Middle-East/Amid-Push-For-Renewable-Energy-Saudi-Arabia-Cautiously-Turns-Over-Green-Leaf.html
By Fawzia Sheikh for Oilprice.com who offer detailed analysis on Crude oil, Geopolitics, Gold and most other Commodities. They also provide free political and economic intelligence to help investors gain a greater understanding of world events and the impact they have on certain regions and sectors. Visit: http://www.oilprice.com
»
- 2934 reads
- Printer-friendly version
- Send to friend
- advertisements -
In similiar news, the promise of Wall Street donations has intrigued President Obama, for whom concern about future elections runs deep, but Obama's recent plan for additional multimillion-dollar donations from traditional labor unions underscores his lingering concern about betting on bankers.
"I don’t think that’s surprising,” said Politico analyst Will Takit of the guarded approach, adding that Obama has long been hesitant given his status as the world’s leading socialist dictator.
Without a “huge, revolution[ary], game-changing donation,” an abrupt shift in the “donation mix” is doubtful, said Takit, who puts more stock in Wall Street gradually capturing smaller Federal agencies. Given the abundance of labor union resources, Obama is more likely to make such nascent banker sources a smaller part of his overall campaign budget, he argued.
Despite trepidation, the President has been drawn to the "relatively unproven campaign financing" of investment banks and hedge funds even though, for the most part, "Democrats are going to be dependent on union shills for money," Takit told buyabill.com. Given his access to the Federal Reserve, Barack Hussein Obama has great potential to become a maja playa but has not made “too much concrete progress so far,” he said.
Oil producing nations... are burning more... or are hooked on thier own supply.... more so than even the BRIC's... More so than the U.S and / or China... why provide $0.25 a gallon gas to create energy / power... when you can use green, look good and sell the oil for real money or for market prices... which does benefit the Country more than the $0.25 a gallon royal decree.
Because green doesn't work. Is everyone ready to live on 15% of what they live on now?
Green does not work and 15% seems like a very, very specific number... so, how about you put down your Bible and we can have a come to Jesus meeting.
Which is code for, lets see why you think 15% is the number? The number I hear, see and / or read for commercial wind farm production is between 20% and 40% which I honestly always read as 30 fucking percent. never mind that, once again... where are you getting your 15% number? did the dog tell you it was 15%? was it your cat? if it was a small furry animal dont listen, its a trick.
You fucking moron.
Only a moron doesn't realize it's all about energy flux density. You should see what wind and solar are compared to oil. Then look how far off the charts fusion is.
Let's use all our resources going green, instead of achieving the same purposes by technologically advancing past the need for oil?
Spend our resources on wind and solar, because I know, the world hasn't been constantly using more fuel since man discovered fire. You see it used to be wood, then coal, and oil/gas, nuclear. But somehow we want to not use nuclear, or do a REAL scientific apollo type program for fusion. We want something MORE BACKWARDS than oil/gas. Meanwhile lets let Wall Street use cap and trade to make 150 dollar oil look like 1.50 oil. Let's invent a system that only pushes prices up, and we all know what oligarchs and big banks will be 'first in'. The rest of us are screwed.
So lets all go green, use up all our resources to provide enough energy to provide 1900 style living, meanwhile we have 20XX style gadgets and consumption.
How about a space program? Obama you idiot. It's through conquering space that we'll solve many of the technological hurdles we face here on earth. That's a pure fact. The best 'return' (real return) on any investment in the history of mankind? NASA. What does Obama say we can't afford? The best investment ever? With the most returns? This guy is a effen idiot. Seems like to me he's as much of an idiot as Bush. But then again I have standards, they're called mediocrity. Obama has to look up from the toilet bowl lid to see mediocrity, but hey bush was swiming around with the big logs he thought he could make money off of.
Green is such a waste of time. How about focusing on the real polluters? Those that dump tons of toxic chemicals into the soil and waterways? How about doing things to curb REAL air pollution. Suddenly all the pollution we know is there, doesn't count, because we have to focus on the death dealing carbon dioxide. Meanwhile let's forget all the REAL pollution out there. All we got to do is say 'to hell with the future', we need no stinking progress, we can live another 40 years off our grandparents hard work.
Who needs Nuclear or fusion, or spacecraft to find raw materials currently nearing depletion with our current tech? We don't need it...say the greenies.....we just need to cut carbon dixoide and all will be well until we run out of everything. If you think monetarism will avoid this with it's magical invisible hand, congratulations you are an idiot.
If you don't understand the energy flux density, then you don't understand energy. If you don't understand energy, then you shouldn't push for 'green' tech. 'Green tech' is backwards. In reality, MORE backwards than oil/gas. While we have the ability and still the time to research fusion, we should. What happens when that is no longer the case because we wasted the next 30 years following a worldwide boondoggle per orders from the monetarists? If you don't seen green as a boondoggle, you're a misinformed idiot.
Our ONLY way out is FUSION. Deal with it. That's the scientific reality. Until then we can use nuclear, it will suffice on an interim basis. But we better get working, we need like 10k nuclear plants and growing. Otherwise we can pretend this isn't the case, just like there isn't a problem on wall street, or with corporate control of our gov't or fascism. Just wait guys, you'll learn the truth. The question is, after how much unneeded suffering, and will it be too late to avoid serious calamity? Rather than take a 30 year detour, lets resume where we should of been in the 1970's and actually fund fusion research.
Green is a farce, and it has little to do with really being 'green'. The word and movement have been hijacked. By the same people who hijacked the rest of your economy. The only idiot I see are those that deny what is really going on, the trends, and the folly of the faux solutions wall street and the queen are pushing. They aren't ushering in a new reality, it's just business silly. But the problems are real, and in no way shape or form is going green saving or solving anything. It would in fact basically assure our destruction. AND eff the oil companies. They're obviously aren't in the equation of fusion.
Only an idiot would divert away from a mankind saving massive fusion research program in favor of a needless, poor return, boondoggle that is wind and solar farms en masse to produce our electricity. We simply can't afford to get this wrong. But we are so close to doing JUST that. Because people won't think.
Oh yeah to bring back WHY we need to 'go back to the moon' and refute what Obama says is 'been there, done that'...which I must say is one of the stupidest things said by mankind EVER? Helium 3.
1000 year supply on the Moon, beyond that we need to go to our gas giant planets. Last I checked, we need a space program to do that. Also last I checked, the moon isn't that far away, and makes for a perfect jump off point for deeper incursions into space. If somethign goes wrong, we're ~3 days return trip home in a lifeboat. We need a REAL space program, and a REAL fusion program. Everything else is as stupid as Ben Bernanke.
So you are pro- Fast Reactor then?
http://www.google.com/#hl=en&source=hp&q=fast+reactor&aq=f&aqi=g-c2g1g-c5g1g-c1&aql=&oq=&gs_rfai=&fp=db16e0b495dd7eaf
With the supply chains in place, with the available materials and dare I even mention with the production lines that are in fact already the fuck on line...
Well, suffice to say that what can be done is being done... or what the people will allow to be done is being done..
the idiots abound... and out number anyone with a clue...
You want to pump a fucking trillion dollars into an un-known and ignore the real, at hand capabilities?
I unlike you, stupid.. think any and all things that would, could or should benefit us all should be tried.
I offer.. Gigaton http://www.gigatonthrowdown.org/intro.php the smartest of the smart all got together and spit this out...
"Green is a farce, and it has little to do with really being 'green'. The word and movement have been hijacked. By the same people who hijacked the rest of your economy. "
for that shot above... I would remind you that Bush signed Tarp stupid... not that Obama has done anything different, your fundamental mis-understanding of the system that works agains you is your problem..
You think there is a difference between Bush and Obama, and that the Greenie's have hi-jacked the Parties.. like this hi-jacked? http://www.google.com/#hl=en&q=blue+green+partnership&aq=0&aqi=g1&aql=&oq=blue+green+partner&gs_rfai=&fp=db16e0b495dd7eaf
and... abortion is still legal... get your crazy ass back to bomb making class, church and or Palin pep rally... http://www.google.com/#hl=en&q=palin+pep+rally+near+you&aq=f&aqi=&aql=&oq=&gs_rfai=&fp=db16e0b495dd7eaf
but dont speak to me like you have a clue when you so clearly do not.
http://videosift.com/video/A-Crude-Awakening-The-Oil-Crash-full-film
They point out that the reserves don't decrease - regardless of what is pumped. More phucked up Enron accounting. Somehow when I see them looking into alternative energy my knee jerk is: "They know what is left on the dipstick."
We are not running out of oil.. there is lots of oil in lots of places...
what are running out of is... affordable, sweat light crude.
http://www.youtube.com/watch?v=wYuLjGQQ-jg&feature=PlayList&p=C1B06538A32767DF&playnext_from=PL&index=132
and then I offer... http://www.youtube.com/watch?v=JaF-fq2Zn7I&feature=PlayList&p=C1B06538A32767DF&playnext_from=PL&index=161 just for good measure... the sheepeople don't know there is an issue... but everyone else does.
Saudi Goes Green: Utilizes Solar Powered Oil Rigs
So the big news here is that the Saudis are concerned that the stuff that has made them accidentally rich might not last forever and that they would very much like to stumble upon some other abundant something (sunlight? sand?) that would continue to keep them very rich in the future.
<music fades>
<lights on>
<170 in. plasma screen slides quietly into marble wall>
"Well, now that you understand the king's goal Omar, get to work right away please."
I think that the Minister of Huge Revolutionary Game-Changing Technology is a nervous man.
The Saudis live in a freak'n desert? Why would they not throw solar thermal arrays up everywhere? Come on.
You know, I could give a damn about climate change, or warming, or cooling, or whatever. The only constant in this reality is change; big surprise when it does. It's our job to survive the changes, not try to keep things static; it's useless and wasteful.
However, it is absolutely beyond ignorant for humanity not to recognize that we live in and on (Earth/Solar System) what is to our flea speck lives an infinite dynamo. How stupid do we have to be? Sad really. Oh, I'm sorry, the numbers don't work for fixed investment infinite energy; let's carry on sucking the c$%ks of the energy corporations and utilities.
For the record, I don't like Gore, I'm not anti oil or nuclear or fusion or mouse wheels. However, I am for what is basically a fixed investment of fiatscos, and labor, that yields and taps what is essentially an endless source of energy in perpetuity.
What do I care what you people think anyway? Soon enough I'll live on a piece of land free and clear, in a house that uses passive solar south facing architecture from materials that costs nearly nothing, I'll have solar thermal and solar arrays and wind turbines and cisterns and a well, and I'll be selling energy back to the utilities because I don't use all mine. You folks can do whatever you want. Wake up, it's time to evolve; forward and backward at the same time.
Sorry, I hate this damn topic. I'm sorry the math doesn't add up for big energy corporations, but I've done it for myself, and I know what does for me and mine.
My Life With The Thrill Kill Kult - After The Fleshhttp://www.youtube.com/watch?v=T8e4YmMiq6E
I am the new way to go. I am the wave of the future. There are alot of innocent people being crucified.
Personally I'll be keeping a low profile. The nicest house on the block is going to attract all the gangs of marauders
And the biker gangs looking for all your hidden gold and silver.
And, don't forget the zombies.
Yes, the endless hordes of zombies.
Don't you believe it. Saudi Arabia is negotiating with the US for approval of its first nuclear power plant. UAE already got approved.
Saudi is pushing hard to develop nuclear power. It's proven and safer than ever. Aramco has set aside several billion dollars for a new nuclear research facility which is already being built. By the way, they don't even need this facility, but Saudis have a habit of building things just so they can say they have them, regardless of cost. What's a few or a hundred million when you're total cost per barrell is anywhere between $3-$8? The more they can reduce domestic consumption, the more they'll have to sell/export. Saudi already subsidizes most of the cost of oil within the kingdom. Gas costs less than $0.50 a gallon. They also alter their strategic regional position by building the plants. Not sure whether or not that will improve their regional position...
If you are a big petro exporting country the best way to spend money is in green tech. you've got to have a hand in th epot when the commmodity runs out. I have always wondred why these folks aren't doing a hell of a lot with solar and wind becuase they have massive amounts of both and the money to do research. very poor state planning