The kingdom's minister of petroleum and mineral resources, Ali Al-Naimi, said that Saudi Arabia will no longer need oil by 2040. He added that the country may become a “global power in solar and wind energy”, so that in 25 years it will be an exporter of electricity rather than that of carbohydrates.
On the back of fossil fuel prices falling, solar power stations remain profitable, and the use of solar energy makes economic sense, Al-Naimi says. At the same time, over a billion people live without electricity, so the demand for oil and gas will continue.
Saudi Arabia has the world's largest oil reserves. Last month, the kingdom achieved the highest extraction rate in the last ten years. Despite such record levels, in 2012, Saudi Arabia announced its intention to reduce dependence on oil and gas production. By 2032, the country expects to produce 41 GW of power by solar stations annually, that is about one third of the kingdom's total energy consumption.
