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The Saudi energy minister Prince Abdulaziz bin Salman said that focusing only on renewable energy sources was a mistake and the entire world may not be able to generate the required amount of energy for economic recovery from the pandemic. The Minister was attending a conference.
“The pandemic and the recovery underway have taught us the value of caution,” said the 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.
The energy prices are high and this is due to the lack of investments but Saudi Arabia was constantly investing in production capacity. Saudi Arabia generates around 9 million barrels a day and has around 15% of the world’s oil reserves.
The Minister also said that the Middle East region can roll out solar, hydrogen, and wind projects at home worth multibillion-dollar meanwhile being the largest oil producer. Deciding between these two is absurd.
Those who are predicting a decline in the use of fossil fuel are living in fantasy land, he said. The energy transition is boosting, but only focusing on renewable energy would be a fatal mistake.
“Technology is an essential pillar to meet this challenge,” he noted. Innovative technology is relevant in executing the Green Saudi Initiative as of which around half of the energy demand will be met from renewable energy sources by 2030.