|
Saudi Oil Minister Warns Against Hasty Transition to Renewable Energy
According to Saudi Arabias Oil Minister Ali Naimi, renewable energy sources are not fully equipped to meet the worlds energy demands and that governments should avoid making huge investments in developing clean energy systems.At a conference in Houston, Mr. Naimi argued that recent injection of billions of dollars by governments to develop renewable energy systems could lead to the collapse of the oil industry. He said that such steps would drive away investors which would hurt the oil producing nations as demand and prices of oil products has been falling sharply. His remarks were clearly aimed at the Obama administration which is reversing President Bushs policies by openly encouraging massive investments in the renewable energy sector. United States has been a close friend and seeing President Obama acting on his promise of energy independence seemed to have alarmed the Saudis. Bills approving of oil exploration along the US coasts, massive subsidies for renewable energy projects and Obama administrations intent to reduce carbon emissions means a medium to long-term decline in oil imports and which have left the Saudis (and OPEC) concerned. Addressing concerns about the rapid growth in renewable energy investment around the world, the minister said: We must be mindful that efforts to rapidly promote alternatives could have a chilling effect on investment in the oil sector. A nightmare scenario would be created if alternative energy supplies fail to meet overly optimistic expectations, while traditional energy suppliers scale back investment. Posted by: tipper 2009-02-16 |
| http://www.rantburg.com/poparticle.php?ID=262721 |