Saudi Arabia put to the test of transition

Saudi Arabia put to the test of transition

Giancarlo Strocchia
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Speaking at WEC 2016, the Minister of Energy of the Saudi Kingdom, Khalid al-Falih, glimpses possible setbacks to the development of alternative energy "but the world cannot help but to invest in this sector". Saudi Arabia also aims to produce 18 billion cubic meters of gas by 2020

"Saudi Arabia’s commitment to hydrocarbons will not abate, but the world needs to continue investing in all energy sources". This was stated by Saudi Arabia’s Minister of Energy, Industry and Mines Khalid al-Falih while speaking at the 23rd WEC in Istanbul. He emphasized that the transition process "will not be linear. There will definitely be setbacks", adding that the international community would have to "skillfully navigate the uncharted waters of the energy transition". "The Saudi Kingdom is committed to its role as the one with the largest share of the world’s spare capacity", he said, announcing that Saudi Arabia intends to intensify investments in the unconventional oil and gas sector, setting a production goal at 18 billion cubic meters by 2020. Speaking about the role of OPEC, Al-Falih commented that "The mission and objectives of OPEC are clear. OPEC represents only a third of global market supply. The important role of OPEC is to coordinate decisions”. Al-Falih, also said that he hopes that Moscow will play a "constructive role" in rebalancing the market, adding that the same principle can be applied to non-OPEC countries. Regarding the possibility of increasing prices to $70 per barrel by 2018, the Minister reiterated that his country "will be prepared to deal with whatever price emerges".