Saudi Arabia Plans To Free 1 Mb/d As it Invests in Nuclear Power

Saudi Arabia aims to cut its oil consumption by 1 million barrels per day by 2030 as it invests in nuclear power and renewable energy sources to replace fossil fuels. The United States and Saudi Arabia signed a 30-year civil nuclear cooperation agreement on July 22, allowing U.S. companies to potentially supply reactors, nuclear materials, and technical services to the kingdom.

Similar agreements with Turkey and the UAE were previously established. The IEA predicts Saudi Arabia's electricity demand will grow by 3.1% annually through 2030, with air-conditioning demand peaking in the summer months. Nuclear power could provide firm, low-carbon electricity when solar generation is unavailable, according to a study by the King Abdullah Petroleum Studies and Research Center.

However, the project faces geopolitical hurdles, including the potential need for diplomatic relations with Israel.