Saudi Arabia's power stations, desalination plants, factories and farms consume more than 1 million barrels per day of liquid fuel that the kingdom aims to displace by 2030. Natural gas and renewables will provide most of the replacement energy. Nuclear power could reduce domestic oil consumption further after 2030 as electricity demand continues to grow.
On July 22, the United States and Saudi Arabia signed a 30-year civil nuclear cooperation agreement, clearing the way for U.S. companies to potentially supply the kingdom with reactors, nuclear materials and technical services. Similar agreements with Turkey and the UAE entered into force in June 2008 and December 2009, respectively.
The commercial opportunity is in Saudi Arabia's search for additional generating capacity. The IEA estimates that the kingdom's electricity demand grew by 3.8% in 2025 and forecasts average annual growth of 3.1% through 2030.
Related: U.S. Shale Producers Lose Bid to Kill Oil Price-Fixing Case
Saudi consumption of crude oil and fuel oil for power generation rises sharply during the summer, when air-conditioning demand peaks. Combined burn reached 1.42 million b/d in June 2024, according to the EIA. It fell to an average of 678,000 b/d in January and February 2025 (the lowest level for that period since 2016) with February alone registering an 11-year monthly low of 589,000 b/d. Reducing domestic oil-fired generation can leave more petroleum available for export or other uses.
#demand #february #million #fuel
On July 22, the United States and Saudi Arabia signed a 30-year civil nuclear cooperation agreement, clearing the way for U.S. companies to potentially supply the kingdom with reactors, nuclear materials and technical services. Similar agreements with Turkey and the UAE entered into force in June 2008 and December 2009, respectively.
The commercial opportunity is in Saudi Arabia's search for additional generating capacity. The IEA estimates that the kingdom's electricity demand grew by 3.8% in 2025 and forecasts average annual growth of 3.1% through 2030.
Related: U.S. Shale Producers Lose Bid to Kill Oil Price-Fixing Case
Saudi consumption of crude oil and fuel oil for power generation rises sharply during the summer, when air-conditioning demand peaks. Combined burn reached 1.42 million b/d in June 2024, according to the EIA. It fell to an average of 678,000 b/d in January and February 2025 (the lowest level for that period since 2016) with February alone registering an 11-year monthly low of 589,000 b/d. Reducing domestic oil-fired generation can leave more petroleum available for export or other uses.
#demand #february #million #fuel
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