Saudi Prince on energy policy

By Nina Elizondo     11/18/10 6:00pm

Saudi Arabian Prince Turki Al-Faisal paid a visit to the Baker Institute on Nov. 11 and spoke about Saudi Arabian energy policy as part of the institute's Shell Distinguished Lecture Series.Al-Faisal's speech, titled "A Pillar of Global Stability: Saudi Arabia's Petroleum Policy," was about Saudi Arabia's role as a major oil producer and as a key figure on the world energy stage.

"Just as Toyota is in the business of selling cars, and Apple is in the business of selling computers, Saudi Arabia is very much in the business of selling energy in whatever form it can generate" Al-Faisal said. "[Saudi Arabia gives] continual support for an oil price within a range that works for both producers and consumers."

According to Al-Faisal, Saudi Arabia will use its oil surplus to help preserve a stable oil market by maintaining a per barrel price of $70-$80. Saudi Arabia is the world's largest producer and exporter of petroleum an. Al-Faisal emphasized that Saudi Arabia aims to eventually expand the energy sources available to it and use and export solar, wind, and nuclear energy as well.

---

---

"No country can or should power itself with solely one form of energy," Al-Faisal said.

Al-Faisal said that in order to have a stable petroleum market, communication between producers and consumers is essential. Al-Faisal also stressed the importance of innovation and cooperation between nations to achieve these ends.

"The black and white scenario of oil versus non-oil in the realm of energy is far from the complete story," Al-Faisal said. "All nations are now intertwined in a unified struggle to create an ideal energy mix that works for producers, consumers, and the planet they inhabit."

Al-Faisal emphasized the importance of interdependence, rather than independence, of nations when energy sources are concerned. He referenced the Deepwater Horizon oil spill as a cautionary tale of the risks of energy independence.

"To literally go to the ends of the earth to retrieve oil is probably not the wisest long-term energy strategy, especially when a country like Saudi Arabia has so much oil that can be safely retrieved," Al-Faisal said.

Al-Faisal called for countries like India and China to be transparent in reporting their energy consumption as this would lead to a more efficient and stable global energy market.

"We must work together to make sure that all nations have the resources and incentives to publish accurate and valuable information on their energy supplies and uses," he said.

While Al-Faisal made clear the economic benefits of alternative energy sources, he did not discuss the environmental effects of them.

Hanszen College freshman Vishnu Kumar said that Al-Faisal came across as a good statesman.

"His speech was interesting and informative, although somewhat predictable," Kumar said.

---