A Glimpse into the Status and Prospect of Renewables in Oil-Producing Countries; With a Special Reference to the Kingdom of Saudi Arabia

摘要

Concerns regarding the diminishing prospects for oil arise from numerous challenges, threatening both supply and demand. With regard to supply, the obvious issues are the depletion of finite reserves and the ultimate physical exhaustibility of this natural resource. On the demand side, the increasing viability and the growing use of alternative and renewable energy sources, fuelled by environmental concerns, are adversely affecting the position of oil vis-a-vis other energy sources. Around the world, greater diversification of energy sources and the growing use of renewable energy technologies have occurred, prompted by several ecological, economic and security considerations. Non-conventional sources, such as solar and wind power, are becoming progressively more viable and pose challenges to the conventional sources of energy. All indications are that the fossil fuel era will not last forever, and that the world is undergoing a shift from a hydrocarbon-based economy to one based on renewable forms of energy. It should be recognised, however, that the prospects for the future of oil are a matter of utmost concern not only for petroleum companies, but also for major oil-producing nations, especially those with oil-dependent economies. Comparatively little research examines this subject from the perspective of such major oil producers, which have historically resisted such a major energy transition. Nevertheless, their failure to face today's energy and environmental challenges may mean that the riches of their oil era, even if said era continues to last for a long time, will be followed by an era of increasing poverty. Moreover, one should not underestimate the potentially vital role that these countries could play in achieving a more sustainable and healthier future for generations to come.