Clean energy investment : A transition towards renewable energy Renewable Publication 2017- September | Page 5

Saudi Arabia : Time to adopt new policies to develop a country based on low carbon energy and
knowledge. Can we hope that oil dependency will be a thing of the past ?
Saudi Aramco , the biggest oil company in the world
already considered that investment in the renewable
energy could permit to diversify their source of
revenues
and
develop
a
economic
transformation.
Indeed, the Minister of Energy created a strategic program to
ensure that will accelerate the energy transition. We think that this
initiative could play a hugely influential role to enhance growth
in the renewable energy sector, With a market capitalization
recently estimated at $2-3 trillion, Saudi Aramco could be
considered as a giant in the world energy market. From oil
production to refining or petrochemicals, Aramco’s main business
add values to the Kingdom and enhance their revenues through
active investment in the upstream production and downstream.
Designed to provide flexibility and optimize oil production
to supply the world market , we think that Saudi Aramco
could become a serious partner to innovate investment
in the renewable energy due to their history in the oil
Exhibit 5
industry : 2,799 million of barrels were supplied to others
regions just for this year according to their annual review.
With 10.5 million of barrels produced in 2016, Saudi Arabia
supports Aramco strategy to diversify their source of energy.
Hence, the government guaranteed that they will put all their
efforts to invest in the renewable energy through several
financial tool such as Islamic sukuk which are bonds issued in
accordance with Islamic law. A useful tool to enhance investment
and provide access to low cost of capital for every actors of the
national economy.
Moreover, the Kindgom decided to conduct a large program of
economic transformation in order to modify the landscape of
Saudi Arabia. Aramco’s decision to invest largely in the renewable
energy with a global investment estimated at $ 5 billions shows
that there is a real wish to obtain a economy based on renewable
energy and avoid oil dependency which tends to become less
profitable for countries willing to sustain their growth.
Saudi Aramco : A future leader of the renewable energy market ? Only time will tell us the truth
about their commitment to avoid climate change.
Number of employees
65 282
Crude oil produced
10.5 million
Key figures in 2016
Renewable energy objective
30% of power from
low carbon energy
Crude oil production & exports (millions of barrels)
Year 2015
2,603
Year 2016
2,799
Daily Crude production from 2012-2016
Year 2012
9.5
Year 2013 9.4
Year 2014 9.5
Year 2015 10.2
Year 2016 10.5
(millions of barrels)
Renewable energy deals
$ 5 billions
Crude oil exports by regions
66.7% Asia
5.9% Europe
15.8% US
5.4 Mediterranean
6.2% others
Source : Annual Review 2016 Aramco
Clean energy investment : A transition towards renewable energy to conceptualize a post-oil city.
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