Yet in light of recent international outrage over various Saudi abuses and atrocities, such as the killing of journalist Jamal Khashoggi, the country is focusing more and more on plans for diversification under Vision 2030. Oil spill in the offshore area requires international collaboration and pre-set contingency response plan to control it and limit its harmlessness. The text or links to all of David’s writings and podcasts can be found at www.dbdailyupdate.com. Without their efforts and investment the events of this past weekend might have spelled a disaster many magnitudes more than what may ripple from the Middle East over the next few months.”. The near $50 drop in oil prices since June has led to rampant speculation about Saudi Arabia's master plan. This website uses cookies to improve your experience. Guest Posts Hub Oil prices ended nearly 15 per cent higher on Monday before stabilising. 2017. Gossen, L. and Velichkina, L., 2006. Are Plug-in Hybrid Vehicles Really Environmentally Friendly. These are the key threats. Alby Modiano, President of the U.S. Oil and Gas Association (USOGA) reminded me that, “The tremendous strides of our domestic producers over the last decade, significantly increasing oil and natural gas production at home is fortuitous. Learn how your comment data is processed. Moreover, oil spills may occur at any time with no pretending or expectation. First, because offshore spills are usually hard to control due to the nature of the offshore environment and tide movement. However, a recent (2019) independent evaluation—to facilitate Saudia Arabia's effort at an initial public offering (IPO) of stock in the national Saudi Aramcooil company—may h… This site uses Akismet to reduce spam. Saudi Arabia’s Natural Gas: A Glimpse at Complex Issues Natural gas is a very significant energy source. The oil production rate has increased incrementally from the 1970s to the 2020s, which is driven by the demand for oil. Petroleum Chemistry, 46(2), pp.67-72. For example, utilizing artificial intelligence in designing environment-friendly factories, increase the awareness of global environmental concerns among the business sector, or investing in industrial recycling facilities, besides developing new environment protection legislation and policies. As a member of G20 countries, Saudi Arabia has submitted a national climate plan to the UN. Blogging Junction Sustainable Natural Resources Management | UNDP In Saudi Arabia. It also committed to reducing greenhouse gas emissions by 130 million tons by 2030. He attended Texas A&I University and The University of Texas, earning B.A. Saudi Arabia’s approach facing the environmental challenges and the global climate issues is encouraging and promising and reflects its role as a member of the G20 country group. Infact, the urban atmosphere is 90% polluted with automobile transport residue, especially in the big cities. Environmental problems of the oil-and-gas industry (Review). The Saudi electrical company had also announced its plans to reduce the dependency on fossil fuels and invest in renewable energy. The first significant Saudi Arabian discovery was at Dammam well no 7 on March 4, 1938. التغير المناخي وقمة باريس: الإجماع البيئي العالمي, Environmental Issues in Oil and Gas Sector, Prioritising the Health and Safety of Workers Across All Energy Sectors | EcoMENA, 15 Inspirational Quotes On The Environment, The Environmental Impacts of Industrialization, Egypt's Water Crisis - Recipe for Disaster, The Menace of Littering and How to Solve It, 5 Ways To Keep Your Home Warm This Winter, Dubai’s Journey Towards a Sustainable City, Water Line Maintenance: Importance and Benefits. It is worthy to mention here that the energy sector contributes about 92% of CO2 emission, and 66% of which is from electricity generation, desalination, and land transportation. The two issues, oil spills, and CO2 emission carry negative effects on the global climate. Mr. Modiano added, “History teaches us that complacency to the ever-present tenuous nature of the world oil market is never rewarded.” Fortunately for Americans, their oil and gas industry hasn’t been complacent recently. Despite the efforts of global society and scientists to reduce the dependency on oil and gas as a main source of energy and find new green and renewable energy sources, the oil remains the most effective one. The Saudi Arabian authority for environment referred to as ‘The General Authority of Meteorology and Environmental Protection (GAMEP)’, pays great attention to protect the country’s environment. Saudi Arabia and the US have enjoyed a long, if at times strained, friendship, based largely on the need of the US for oil and the perception that the Saudis were “tough on terrorism”. Oil on the Arabian Peninsula was discovered as early as 1908, but consideration of the area as a likely source of hydrocarbons didn’t really take off until a 1932 oil discovery in neighboring Bahrain. In addition to client-related work, David also maintains a growing media communications practice. The irony of KAEC is that it is being built to create non-oil commerce and industry in Saudi Arabia, yet the city will be utterly dependent on oil to survive. In 1913, his forces captured the province of al-Hasa from the Ottoman Turks. On January 15, 1902, Ibn Saud took Riyadh from the Rashid tribe. The discovery of hydrocarbons was key to transitioning the country’s economy from tourism (or more specifically pilgrimage) to the oil & gas giant it is today. For example, flaring and venting, decommissioning of oil and gas installations, oil storage tanks disposal, drilling activities etc. Regional tensions with Iran have made the Strait of Hormuz an … Saudi Arabia is the world’s biggest oil exporter and has been the supplier of last resort for decades. Kapsarc.org. The main problem with the dependence on oil and gas as a primary source of energy lies in the huge pollution caused by the industry. Saudi oil resources and oil policies play a primary role in the kingdom’s dealings with the outside world. © 2021 Forbes Media LLC. Saudi Arabia can no longer rely on oil We also use third-party cookies that help us analyze and understand how you use this website. You also have the option to opt-out of these cookies. The major sources of pollution in across the world are vehicular emissions and industrial discharges. Saudi Arabia Oil and Gas covers field development expertise, technological programmes, technology applications and, from time to time, social developments. Post was not sent - check your email addresses! 28 Apr 2021 OPEC+ confirms small supply hike as demand for oil rebounds This Saturday, Sept. 14, 2019, satellite image provided by NASA Worldview shows fires following ... [+] Yemen's Houthi rebels claiming a drone attack on two major oil installations in eastern Saudi Arabia. The world is awash in oil, analysts say, and demand will probably continue to decline. Last year, the kingdom’s oil demand hit 3.29 or over 32% of the total crude supply. Crown Prince Mohammed bin Salman says Saudi Arabia is negotiating with a ‘leading global energy company’ for the sale. However, it seems challenging to fulfill the huge need for electricity from solar energy despite the sunny weather that Saudi Arabia enjoys. It is well known that in Saudi Arabian oil and gas industry, most activities are located offshore. In December, 2015, Saudi Arabia reported a US$98 billion budget deficit (about 15% of gross domestic product [GDP]) in 2015 with no improvement projected for 2016.1 Saudi Arabia has been resilient during oil price fluctuations in the past, so the new government budget came as a surprise. The Dammam field, near the eastern coast of Saudi Arabia, … Historically, at least since 1982, Saudi Arabia has maintained reserves data and related technical information as a well-guarded secret. David Blackmon is an independent energy analyst/consultant based in Mansfield, TX. You may opt-out by. Pingback: Prioritising the Health and Safety of Workers Across All Energy Sectors | EcoMENA, Your email address will not be published. As we know the modern factories and manufacturing processes require increasing flux of electricity, other than the expanding cities. David has enjoyed a 39-year career in the oil and gas industry, the last 23 years of which were spent in the public policy arena, managing regulatory and legislative issues for various companies, including Burlington Resources, Shell, El Paso Corporation, FTI Consulting and LINN Energy. Oil spills can be a source of escalated accidents as well and entail potential risks. Above all, Saudi Arabia's oil dependence has also led to structural inefficiencies such as rising unemployment among Saudi citizens and a heavily subsidized welfare system. How Are Energy Alternatives All Over The World, 8 Easy Tips For Heating Your Home Naturally, Sustainable Agriculture: Perspectives for Jordan Valley, The Advantages and Disadvantages of Gene Editing Technologies. Saudi Arabia will end up with higher oil revenues and a bigger share of the oil market once the market stabilizes. David has enjoyed a 39-year career in the oil and gas industry, the last 23 years of. [online] Available at:   [Accessed 20 March 2020]. Scientific studies have shown that when an oil spill occurs offshore, the oil film on the surface contains 60% of hydrocarbon of which 50% is evaporated into the atmosphere. Saudi Arabia has recently launched an oil price war that affects the global economy. This is also reflected in Saudi Aramco pollution concerns where the importance is given to control and monitor pollution at both the coasts – eastern and western. Oil spill is considered to be the most environmentally challenging aspect of oil production for two reasons. Smoke billows after drone attacks sparked fires at two Saudi Aramco oil facilities in Saudi Arabia's eastern province on Sept. 14, 2019. UNDP. As outlined above, however, shale oil developments in the US have made it much less dependent on Saudi Arabia for its energy requirements. During this time, David has led numerous industry-wide efforts to address a variety of issues at the local, state and federal level, and from April 2010 through June 2012, he served as the Texas State Lead for America’s Natural Gas Alliance. Saudi Arabia is the world’s second-largest producer of crude oil behind the United States. The second environmental challenge facing Saudi Arabia’s oil and gas industry is Background. This category only includes cookies that ensures basic functionalities and security features of the website. As a conclusion, the Saudi Arabia transformational movements to meet the objectives of Vision 2030 can be a fixing tool for the environmental challenges it faces. Why Laminate Flooring is the Perfect Option for Your Office? Saudi Arabia, the mainstay of the world’s oil system, is faced with mounting problems in its domestic energy market which affect its ability to function as the global swing producer, warns Eckart Woertz in a policy brief written for the Norwegian Peacebuilding Resource Centre (NOREF). The governmental authority put oil spills in high priority accidents’ classification after the fire. In addition, below sea surface the hydrocarbon percentage reaches 30%, This percentage is decreases to 10% at a depth of 100 meters. In 1922, he completed his conquest of the Nejd, and in 1925, he conquered the Hijaz.In 1932, the Kingdom of Saudi Arabia was proclaimed with Ibn Saud as king. It is also linked to the 10th,11th, and 13th sustainable development goals (SDGs) for sustainable cities and communities in UN protocols. Unfortunately, the below surface area forms the living area of marine growth which in turn forms the food for most kinds of fish. There is no easy cure for the predicament that Saudi Arabia and the rest of the oil industry face. The oil industry, as it emerged from the United States and spread globally in the late nineteenth and early twentieth centuries, suffered from a constant boom and bust cycle. As world oil demand increases, however, Saudi Arabia is increasing its production and export capacity, leading to an increasing volume of oil being shipped through pipelines and … One of the alternative power sources which are being discussing by the Saudi government is the nuclear power as it can produce power more efficiently than fossil fuel and solar energy despite its controversial nature. The oil and gas industry is paying increased attention on protecting the environment especially after the new environmental regulations in the globe supported by specialist organizations like API, IPIECA, and OGP. The air quality improvement concept is part of article 2 of the General Environment Law. This has made independent verification of the Kingdom's reserves and resources virtually impossible, leaving various commentators and the world at-large to rely upon speculation and indirect indicators. Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Reddit (Opens in new window), Click to share on Tumblr (Opens in new window), Click to share on Pinterest (Opens in new window), Click to share on Pocket (Opens in new window), Click to share on Telegram (Opens in new window), Click to email this to a friend (Opens in new window), Click to share on WhatsApp (Opens in new window), Click to share on Skype (Opens in new window). This amount of continuous pollution, which is a result of normal activities, not accidents, forms the second major threatening to the entire ecosystem and humankind’s life. This website uses cookies to improve your experience while you navigate through the website. Blogging Hub. Globally, it is challenging to continue on hydrocarbon production with low cost and simultaneously adhere to environmental regulations and social responsibility. That is why global collaboration and united regulations should be followed to ease tackling these issues or reduce their negative impacts. [online] Available at: [Accessed 26 March 2020]. In 2001, world production reached 2,218 million tonnes of oil equivalent, slightly less than coal (2,248 mtoe) and about 62 per cent of the amount of oil production (3,585 mt). 1. BioEnergy Consult Saudis keep control of the oil market despite a production increase. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. This is because they are a result of oil operation activities failures or accidents. So, oil spills and potential accidents with pipelines, facilities, oil tankers, or rigs, are very much existent and having serious negative impact on marine life and public health. Save my name, email, and website in this browser for the next time I comment. He is currently Associate Editor for Shale Magazine (www.shalemag.com), a contributor on energy-related matters at Forbes.com, and a feature writer for World Oil Magazine. Specifically, Saudi Arabia Oil and Gas outlines key technology applications, technology partnerships and R&D initiatives in meeting Saudi Arabian E&P technology … 2018. Saudi Arabia is likely going to have re-think its long-standing practice of selling oil via fixed contracts and embrace a move to a far larger proportion of spot cargoes and flexible pricing. Even under the best circumstances, increasing the non-oil revenues by a factor of over 6 in only 14 years is difficult -- let alone in a nation like Saudi Arabia that is still dependent on foreign expertise for its oil industry and that also faces a lot of dissatisfaction among the population. Your email address will not be published. Here are a dozen things everyone should know about the past weekend’s strikes on a major Saudi oil refinery, and the likely fallout from them: So, the bottom line here is that this is a major disruption event - the largest the world has ever seen - with no easy, quick solution likely to materialize. For your average citizen in Saudi Arabia, that means only one thing - more belt tightening. Saudi Arabia Oil and Gas Magazine is part of EPRasheed Group and was formed in 2005. The island shown in the image is Bahrain, while the peninsula in the image is Qatar. It then dropped back to about $66 per barrel after Donald Trump pledged to release some of America’s oil reserves, to make up the shortfall from Saudi Arabia. Long-serving technocrat Khalid al-Falih was ousted as chair of Saudi Aramco one day and as head of the Ministry of Energy the next. The drones attacked the world's largest oil processing facility in Saudi Arabia and a major oilfield operated by Saudi Aramco early Saturday, sparking a huge fire at a processor crucial to global energy supplies. Second, because of the huge harm that the oil spill puts on marine habitats which in turn is considered as the main source of food for the community. The boom in industrial activities and investment in Saudi Arabia is demanding more power. Opinions expressed by Forbes Contributors are their own. We'll assume you're ok with this, but you can opt-out if you wish. The drones attacked the world's largest oil processing facility in Saudi Arabia and a major oilfield operated by Saudi Aramco early Saturday, sparking a huge fire at a processor crucial to global energy supplies. These cookies do not store any personal information. The second environmental challenge facing Saudi Arabia’s oil and gas industry is CO2 emission. Saudi Arabia’s war in Yemen has been driven by concerns for oil supply and delivery. 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He is the resident energy expert on the "In The Oil Patch" radio program, and executes frequent public speaking engagements around the state of Texas and at conferences. All Rights Reserved, This is a BETA experience. These cookies will be stored in your browser only with your consent. Several large Saudi oil fields were also attacked. Will Fully Electric Cars Survive in Rural Areas? Demanding more power, 2006 Arabia will end up with higher oil revenues a... Energy Sectors | EcoMENA, your blog can not share Posts by email challenging to on. Pipelines networks in oil, analysts say, and website in this for... Marine growth which in turn forms the food for most kinds of fish, this is a popular to. ’ classification after the fire source of escalated accidents as well and potential. Opt-Out if you wish kinds of fish you can opt-out if you wish in UN.. 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