31/01/2012 07:26 AST
Minister of Petroleum and Mineral Resources Ali Al-Naimi said on Monday that Saudi Arabia will continue to be a reliable, steady and dependable supplier of energy to the world.
Giving a frank and forthright assessment of the oil industry while delivering the keynote address at Chatham House energy conference in London, Al-Naimi said: "Saudi Arabia's domestic growth will not impact on exports now or in the future."
The highly experienced minister explained in detail as to why oil would continue to play a major role in the overall energy mix for many decades. "It is clear that a petroleum-free transportation system is decades away; and if you look at the vast range of products derived from crude oil, everything from lubricants to asphalt, medicines to plastics, it is clear petroleum is here to stay," he said.
He said Saudi Arabia has invested massively for the Kingdom's future and for the future stability of global oil markets. "It is because of our ongoing investment that we are able to respond to shortages around the world," he said. "Take issues with Libyan production last year, for example ... It is because of our investment that any future shortages will be handled."
Admitting that the Kingdom's domestic energy demands were rising, Al-Naimi said: "This has been a trend for many years and is normal for any growing economy ... The same occurred in Europe, the same is happening in China, but ever-increasing economic growth is not exponential, as Europe and the US are currently witnessing, and neither is increasing energy usage."
He pointed out that Saudi Arabia is going through a period of rapid and extraordinary economic growth. "It has a young and fast-growing population, and a GDP growth rate currently around 7 percent. Industrialization is increasing and we are witnessing an unprecedented expansion in the country's infrastructure," he said, and added that Saudi Arabia was not leaving domestic energy consumption unchecked.
According to Al-Naimi, the oil industry is experiencing a dynamic change with the US and Canada increasing domestic production, Brazil seeking to unlock its large offshore reserves, and countries such as Iraq and Libya aiming to increase production. "So (these are) dynamic times, but also a time of opportunities ... (And) this is true for many countries, including Saudi Arabia."
He updated the prestigious think-tank's delegates on some of the key investments and measures Saudi Arabia has put in place to promote the oil and gas sector and also energy efficiency.
"In 2009, the Kingdom completed a massive program to increase oil production capacity; this investment and effort is aimed at retaining our position as No. 1 supplier of oil to the world and the investment continues," he said.
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