Is Saudi Arabia poised to make a significant dent in its oil burn numbers next year? 2020 saw a boost to the kingdom’s non-associated gas output, yet that was largely offset by the Opec+-enforced drop in associated gas production, a dynamic that has carried on through much of 2021. But there are now indications that rising gas output is making its mark, and this should only strengthen in 2022.
The government aims to virtually eliminate oil burn by 2030 through a combination of gas and renewables, and indeed this is a key plank of its updated ‘nationally determined contribution’ (NDC) submitted ahead of last month’s Cop26 discussions (MEES, 29 October). Progress has been made, but has been stymied by the dislocations caused by the Covid-19 pandemic. Those dislocations are now falling away. (CONTINUED - 705 WORDS)