Their experiences might be useful for saudi arabia

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Unformatted text preview: hs. At a local level, electricity shortages caused by demand outpacing infrastructure have already triggered rare protests in at least one province. 233 Last printed 9/4/2009 7:00:00 PM Oil DDW 2012 1 AT: Squo Solves 234 Oil DDW 2012 1 Current renewables and price manipulation won’t deal with Saudi consumption trajectory Lahn, Research Fellow for Energy and Development at Chatham House and Stevens, Senior Research Fellow for Energy at Chatham House and Emeritus Professor at Dundee University, 11 Glada Lahn, Research Fellow for Energy and Development at Chatham House and Paul Stevens, Senior Research Fellow for Energy at Chatham House and Emeritus Professor at Dundee University, 12-11, [“Burning Oil to Keep Cool The Hidden Energy Crisis in Saudi Arabia,” The Royal Institute of International Affairs, Chatham House, www.chathamhouse.org/publications/papers/view/180825] E. Liu This report has examined the problem of excessive consumption of fossil fuel in Saudi Arabia. As it is the world’s largest exporter of oil and the only one capable of using its spare capacity to stabilize global oil markets, this problem has global as well as domestic ramifications. Business-as-usual simulations show that the country’s current trajectory is unsustainable, economically and politically. They also signal problems for the wider global economy, which, still being largely oil-dependent, will suffer if Saudi Arabia ceases to maintain a sufficient amount of export capacity. That a growing share of the country’s own hydrocarbons production is being devoted to domestic needs is largely due to a history of very low energy prices. As noted with reference to international examples, any effort to conserve fossil fuels is severely constrained while prices remain so low. Our analysis has shown that current government policies and targets are not enough. The addition of planned nuclear and renewables will not fill the demand gap in time. Raising the price of energy is the most obvious means of restraining consumption, but this risks being stalled or undermined by lack of public support or by powerful opposition from key groups that benefit from the status quo. Several countries have attempted price rises and other measures to smooth these reforms, particularly during the oil price spike of 2008 when countries that have to import oil products suffered from higher bills. Their experiences might be useful for Saudi Arabia, which is just beginning to address these issues, especially as it has no time to lose by making the same mistakes. 235 Last printed 9/4/2009 7:00:00 PM Oil DDW 2012 1 ***Russia Aff*** 236 Oil DDW 2012 1 Modernization Turn 237 Last printed 9/4/2009 7:00:00 PM Oil DDW 2012 1 Turn – high oil prices cause Russian modernization – price drops de-escalate the military Bennet 4/4/12 [John T. Bennet, foreign policy contributor to the Chicago Tribune, http://articles.chicagotribune.com/2012-04-04/news/sns201204041200usnewsusnwr201204030403russiaapr04_1_oil-prices-cubic-meters-naturalgas] Putin made a...
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This note was uploaded on 01/30/2013 for the course ECON 101 taught by Professor Burke during the Spring '13 term at Southern Arkansas University.

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