KSA BOOSTS DIVERSIFICATION AMID GLOBAL ENERGY SHIFT

Saudi Arabia has aggressively expanded its energy sector, embracing oil, gas, renewables, and nuclear power to diversify and align with Vision 2030 goals amidst global challenges

- By ABDULAZIZ KHATTAK

OVER the past year, Saudi Arabia has accelerated its transformation of the energy sector, aligning with its Vision 2030 objectives to diversify the economy and promote sustainability.

This period has seen significant developments in oil production, natural gas expansion, and a robust push toward renewable energy.

These efforts underscore the Kingdom's commitment to maintaining its position as a global energy leader while transitioning to a more sustainable and diversified energy portfolio.

In early 2024, the Kingdom decide to maintain its maximum sustainable capacity (MSC) at 12 million barrels per day (bpd), and not to continue increasing MSC to 13 bpd.

In the latter half of 2024, Saudi Arabia made strategic adjustments to its oil production policies.

Reports from September indicated that the Kingdom decided to abandon its previous target of maintaining oil prices at $100 per barrel.

The decision reflects Saudi Arabia's adaptation to an era of lower oil prices and its intention to increase production, aiming to boost output by an additional one million barrels per day by December 2025.

This move is part of a broader strategy to adjust to global market conditions and sustain its influence in the oil sector.

However, this strategy has not been without challenges. By December 2024, Saudi Arabia faced difficulties in maintaining its traditional dominance over the global oil market.

Internal disagreements within the Opec+ alliance and increased competition from other oil-producing nations, such as Brazil and Canada, have complicated the Kingdom's efforts to control production levels and stabilise prices.

Additionally, the resurgence of US shale production, bolstered by favourable policies from the re-elected Trump administration, has intensified supply pressures.