Oil Price reports that Saudi Oil Minister Abdul Aziz bin Salman has announced that his country is no longer an oil producer, but does he mean that?
"Saudi Arabia is no longer an oil-producing country, but an energy-producing country," the Saudi energy minister said.
Saudi Arabia has many green aspirations, including gas, renewable energy, and hydrogen.
"The world must accept this fact," said Abdul Aziz bin Salman. "We are going to be the best in these activities."
Saudi Arabia will undoubtedly benefit from this shift to clean energy. While Exxon, Choron, and Shell are negotiating with environmental activists in companies and courts, national oil companies, especially in OPEC countries, are eager to benefit from rising oil prices due to these negotiations. Saudi Arabia has raised its official selling price of oil to Asia for delivery in July.
But this does not prevent the continuation of Saudi Arabia's green aspirations. Saudi Arabia derives its green activities from oil sales. It plans to allocate 50 percent of its energy production to renewable energy by 2030 to reduce its dependence on oil. Renewable energy in 2017 accounted for only 0.02% of the total share of Saudi energy production.
But this does not mean that Saudi Arabia will reduce its oil production and stop financing its new oil and gas projects. Oil activities will continue until at least 2050. Saudi Arabia believes oil will continue to be a major source of energy for decades to come.
Saudi oil revenues, which cover the cost of its green activities, have fallen over the past year and a half, and Aramco has been forced to stop selling its securities to pay huge profits to the government.