Prince Abdulaziz bin Salman, Minister of Energy, affirmed that the Kingdom will be the most important country in increasing production capacity, explaining that the world is on the verge of an energy crisis if there is no increase in investment spending.
Prince Abdulaziz bin Salman said, “We are entering a period that could be dangerous, and unless there is an increase in investment spending to maintain and increase production capacity, the world is on the verge of an energy crisis.”
Prince Abdulaziz bin Salman indicated, during the 2022 Budget Forum in Riyadh, that 65% of what is spent is not to increase production capacity, but rather to maintain its levels, which means that any decrease from this number will result in a shortage of currently produced supplies.
The Minister of Energy warned of “disruption campaigns” targeting the energy sector in the Kingdom, noting that the Kingdom is the only country that increased its production at the height of the Corona pandemic in April 2020, and therefore took the initiative with certainty to confront the uncertainty that plagues markets. He pointed out that the share of oil from the total demand for international energy until 2045 will be from 28% to 30%, “with a very important difference, which is that the volume of global energy demand will be almost double what it is now.”
He added, “In the event of stopping the investment in the exploration sector, which is advocated by the International Energy Agency and some other parties, production may drop by about 30 million barrels in 2030.”
He said, “All these factors are frightening, but they are reassuring, and that what is said for the year 2030 until 2050 is exaggerated and will not be achieved. Global demand will decrease, so supply from many countries will decrease.
He stated that the lack of investment will lead to the fading of untapped production capacity, warning of a decline in production by about 30 million barrels as a result of stopping crude exploration investments, and regarding renewable energy, he explained that the Kingdom plans to invest 380 billion riyals in renewable energy projects by 2030.