The Rapid Growth of Domestic Oil Consumption in Saudi Arabia and the Opportunity Cost of Oil Exports Foregone

Gately, Dermot; Al-Yousef, Nourah; Al-Sheikh, Hamad M. H.

doi:10.2139/ssrn.2006766

Cited by 12 publications

(12 citation statements)

References 8 publications

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“…Evidently, (10) differs from the conventional energy demand equation as it has TFP as an individual independent variable in the modeling framework. For the econometric estimation purposes of our study here, (10) can be re-written as the following explicit functional form:…”

Section: Energy Consumption Modelingmentioning

confidence: 99%

“…First, there is a policy willing to stimulate rational consumption of energy as highlighted in the Fiscal Balance Program of Saudi Vision 2030 [7]. Second, a number of studies show that domestic energy consumption in Saudi Arabia is considerably high compared to other similar countries, which can lead to some consequences [8][9][10][11][12]. Both of these would imply lowering the pace of domestic energy consumption, for which TFP can be considered as one of the sustainable factors.…”

Section: Introductionmentioning

confidence: 99%

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How Total Factor Productivity Drives Long-Run Energy Consumption in Saudi Arabia

Hasanov

Liddle

Mikayilov

et al. 2019

Energy and Environmental Strategies in the Era of Globalization

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In this study, we investigate how total factor productivity (TFP), alongside income, price, and population, shapes energy consumption in the long-run in Saudi Arabia, the world's number one oil exporter. To do so, we first estimate a production function and construct the associated TFP series, and then assess TFP's impact on energy consumption. To take into consideration the stochastic properties of the variables, we employ unit root and cointegration methods. We also correct estimations and test results for potential small sample bias. Our main finding is that TFP has a statistically significant impact on energy consumption in the long-run. The main contribution of our research is that to the best of our knowledge this is the first study that estimates energy consumption effects of TFP for Saudi Arabia. We believe that our research would be useful for Saudi Arabian policymakers in understanding how TFP, a representation of technological progress, institutional development, innovations, openness, and R&D development, influences energy consumption over time. Saudi Vision 2030, the strategic road map of Saudi Arabian development, implies The original version of this chapter was revised: The category of this chapter has been changed to open access. The correction to this chapter is available at https://doi.195 196 F. J. Hasanov et al.rational behavior and lowering the pace of energy consumption in the country. Thus, TFP improvement is a sustainable way to attain these goals.

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Section: Energy Consumption Modelingmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

How Total Factor Productivity Drives Long-Run Energy Consumption in Saudi Arabia

Hasanov

Liddle

Mikayilov

et al. 2019

Energy and Environmental Strategies in the Era of Globalization

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“…Since 1971, fuels consumption in Saudi Arabia has increased nine-fold and, today, Saudi Arabia is the sixth largest oil consumer in the world while being only the nineteenth largest economy (Gately et al, 2012). Total global fuel subsidies decreased significantly between 2012 and 2014 because of the decrease in crude oil prices.…”

Section: Fuel Subsidiesmentioning

confidence: 99%

The Environmental Cost of Global Fuel Subsidies

Davis¹

2016

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I have not received any financial compensation for this project nor do I have any financial relationships that relate to this research. This manuscript is under preparation for "Renewables and Diversification in Heavily Energy Subsidized Economies", a special issue of the Energy Journal. I have not received any financial compensation for this project nor do I have any financial relationships that relate to this research. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

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“…One consequence of economic and population growth in oil-producing countries is that consumption increases; if production does not grow at least as much as consumption, the result is a decrease in the availability of oil for export [66][67][68][69]. Although not a sign of peak oil directly, decreasing export capabilities of producing countries will have the effect on importers of reducing supply.…”

Section: Export Capabilities Of Producing Countriesmentioning

confidence: 99%

Ten Reasons to Take Peak Oil Seriously

Brecha

2013

Sustainability

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Forty years ago, the results of modeling, as presented in The Limits to Growth, reinvigorated a discussion about exponentially growing consumption of natural resources, ranging from metals to fossil fuels to atmospheric capacity, and how such consumption could not continue far into the future. Fifteen years earlier, M. King Hubbert had made the projection that petroleum production in the continental United States would likely reach a maximum around 1970, followed by a world production maximum a few decades later. The debate about "peak oil", as it has come to be called, is accompanied by some of the same vociferous denials, myths and ideological polemicizing that have surrounded later representations of The Limits to Growth. In this review, we present several lines of evidence as to why arguments for a near-term peak in world conventional oil production should be taken seriously-both in the sense that there is strong evidence for peak oil and in the sense that being societally unprepared for declining oil production will have serious consequences.

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The Rapid Growth of Domestic Oil Consumption in Saudi Arabia and the Opportunity Cost of Oil Exports Foregone

Cited by 12 publications

References 8 publications

How Total Factor Productivity Drives Long-Run Energy Consumption in Saudi Arabia

How Total Factor Productivity Drives Long-Run Energy Consumption in Saudi Arabia

The Environmental Cost of Global Fuel Subsidies

Ten Reasons to Take Peak Oil Seriously

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