Saudi Arabia
is
set to consume as much as 40% of its oil production within the next 10-15
years, reducing the amount available for export and spurring the kingdom to
invest in sources of alternative energy, according to Prince Turki Al Faisal, a
senior member of the royal family and the kingdom's former intelligence chief.
"
Saudi Arabia
is
now consuming nearly a quarter of its own production," Prince Turki told
Dow Jones Newswires in an interview. "In the next 10-15 years that ratio
will go up maybe to 30-40%. And as the country develops and its own
requirements for energy also increase, you have less and less ability to sell
abroad."
Saudi Arabia, the world's top crude exporter, is likely to become even more
important in world energy markets over coming decades as some supplies outside
the Middle East start to dwindle. Saudi crude oil output capacity is around 12
million barrels a day, or 14% of world consumption of 85 million barrels a day,
but its current daily level of production is about 8.4 million barrels.
However, analysts have expressed concerns that the rapid growth of Saudi
domestic demand may reduce the quantity of crude available for future exports,
even if the kingdom raises output closer to capacity levels. That would place
strain on the global hydrocarbons market and put a dent in the kingdom's purse
as it tries to find jobs for a quickly growing population.
Prince Turki said the kingdom aimed to switch to alternative energy sources.
"We're going to have to use replacement energy for oil...to cut down on
our consumption of our own oil so we can have more to export." He said the
country's leaders hoped alternative energy would account for up to 40% of total
domestic consumption "in the near term."
He also urged other major reserves holders Venezuela, Iran and Iraq to invest
in crude oil production facilities to accommodate rising demand in emerging
markets and a post-recession U.S.
While Prince Turki is no longer in government, he remains an influential figure
in the kingdom, having served as ambassador in London and Washington and headed
the country's intelligence service. His brother is the foreign minister.