Rising Oil prices further to grow Renewable Energy in Gulf Countries
Rising Oil prices further grow Renewable Energy: Why oil prices are increasing rapidly?
H. E. Suhail Al Mazrouei declared on Wednesday that the cost of oil is going to rise further in the coming days as China’s demand for oil consumption is going to rises, then it will going to be very difficult for the oil producers to supply oil in the other markets as well.
China is the largest importer of oil and the second highest economy in the world. Earlier, there was a reduction seen in the oil demand due to the strict lockdowns imposed by the Chinese government to stop the spread of Covid 19. However, things coming back to normal, and a surge in oil will be seen in the Chinese Markets.
UAE is the 3rd largest oil producing country in the OPEC (Organization of the Petroleum Exporting Countries). Being able to supply crude at its large scale capacity, it still doubts its shortage to supply would increase if the global market will continue using it at the same rate. And if China enters the market, then there will be a drastic lead to more consumption.
Suhail Al Mazrouei gave an alert that if they do not continue to receive any investments across the globe, the Organization of the Petroleum Exporting Countries and its allies, will not be able to provide assurance regarding the adequate supplies of oil as per the increasing demand after the recovery of the global pandemic.
In a statement, the energy minister told, “We’re lagging by almost 2.6 million barrels per day.” It’s quite a huge amount of difference and this situation clearly signifies that it will be difficult to bring the huge quantities. Apart from the major reason for higher oil prices, Russia’s conflict with Ukraine also played an equivalent role. Assumptions have been made that the government has purposely increased the prices so that there could be a transition from oil to more renewable sources of energy like wind and solar energy.
An Advantage for Renewable Energy
Renewable Energy could benefit from the current situation. The riser of the power and energy industry has led to an increase in global energy industry investments. This form of energy accounts to low carbon emissions and less air pollution, thus solving many environmental issues that we face today. Some of the most common renewable energy sources in the world are hydropower and wind energy. This has led to the demand in the hydraulic turbine and wind turbine market. hydraulic turbine
Looking into the history of wind turbines, and the demand for floating wind turbine these are one of the fastest growing renewable sources of energy, with the biggest contribution coming from offshore wind energy investments. Turbines are often repaired/maintained by abrasive blasting methods and mechanical seals. The production methods vary between forging vs casting. Mostly used one is open die forging which is classified under various types of forging methods in the forging industry.
Many power and energy industry analysts believe that the current high prices – and the financial windfalls that come with them – could prompt government and oil majors to shift to more renewable energy and the investments are going to increase further in this industry. For example: In the month of September 2019, an energy giant Total Energies told,” It would use rising oil prices to buy $1.5 billion worth of shares to $ 12.8 Billion – saying it would rise its spending on low carbon energy by 40% by 2025 and 50% by 2030 respectively.
Examples of how Gulf Countries are adapting to renewable energy
The GCC is an outstanding example of a petroleum region that has reaffirmed its dedication to renewable power. The growth of sustainable power has been cited by several Mid Eastern countries as being essential to its lengthy ambitions for regional expansion and environmental management solutions. Many GCC countries have made use of power systems engineering to build electric motors that indeed increased demand for the Electrical Vehicles (EV). Despite the risk factors like cyber-attacks (handled by cybersecurity) and crucial issues in the energy transition to renewables (handled by gravity batteries), most of the countries are still sticking to the use of renewable sources of energy.
For instance, Saudi Arabia had stated a gross goal for 2060 and plans to produce 50% of its power from sustainable energy by 2030. The Sakaka sun energy plant, Saudi Arabia’s first clean energy facility, was officially opened in April. The government declared on December that it was going to invest SR380 billion in renewable power by the completion of the century.
The United Arab Emirates has aimed to attain a total of zero emissions by 2050, by investing an amount of 600 billion AED in renewable energy. This decision was made after the opening of a Solar energy park named after Mohammed bin Rashid Al Maktoum at Dubai. UAE has stepped towards its sustainable future by lowering the consumption levels of energy. This step toward energy efficiency in UAE has marked Dubai: A Sustainable and Smart City to live in. UAE has built energy efficiency with smart buildings.
Several developments were done by other GCC countries like the opening of a 500 MW Ibri 2 sun energy field at Oman and Qatar, among the biggest gas producers in the world, concentrating on renewable energy.
Last October, Qatar Petroleum, the national energy company, changed its name to Qatar Energy to better reflect the company’s renewable energy-focused strategy. The 800 MW Al Kharsaah solar power facility, which is situated around 80 km to the west side of Doha, is one of the major initiatives. The program would be the biggest renewable energy facility in the nation when it is finished. The inauguration is planned for beginning of year.
Despite a few conjectures regarding what proportion of the big payout brought on by high crude oil prices will go toward energy transition or whether gross objectives can be encountered if cash keeps flowing into the latest types of projects, it is evident that alternative sources are going to play an increasingly prominent contribution to the long-term power proposals of both enterprises and governments.