Saudi Arabia May Run Out Of Oil By 2030: Citigroup

  @MayaErgas on September 05 2012 12:04 PM
Oil in Saudi Arabia
A new report from Citigroup says Saudi Arabia is running out of oil at a higher rate than expected. Reuters

A new report from Citigroup says that by 2030, Saudi Arabia could run out of oil and may need to start importing.

According to the report and Bloomberg, Saudi Arabia uses oil for about half of its electricity production, which is growing at about eight percent a year along with population growth.

The 150-page report, written by analyst Heidy Rehman, said that "If Saudi Arabian oil consumption grows in line with peak power demand, the country could be a net oil importer by 2030."

The country also depends on oil for 86 percent of its annual revenue, and according to the English-language outlet Arabian Business, Saudi Arabia already consumes all of its natural gas production. In 2011, the Saudis produced 11.1 million barrels of oil and natural-gas-liquids a day, according to Bloomberg.

On a per capita basis, Saudi Arabia is the top consumer of energy, even more than the U.S., South Korea, Russia, France and Japan.

In March, the US asked Saudi Arabia to increase its output of crude oil to accommodate sanctions on Iran.

 The Daily Telegraph newspaper of Britain reported that the Saudis are planning to build nuclear plants in anticipation of the day the oilfields run dry, although "they are woefully short of nuclear power experts."

The Saudis also harbor great hopes for solar energy.

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