How Will Oil Producing Countries Diversify, When The Demand For Oil Declines?

[Janus 28]

Initially I'm  thinking of Saudi  Arabia. I understand that there is some  income from tourism. I am also thinking of all the money they spend on arms. Not just with BAE in the UK. If Wikipedia is accurate on this subject, there is a lot spent with the USA too.
https://en.wikipedia.org/wiki/2017_United_States–Saudi_Arabia_arms_deal

World demand for electric vehicles will eventually gather momentum. Not just cars, but commercial vehicles over time.

There will always be demand for arms, so I guess BAE will  continue selling to some countries. It will be  interesting to  see how the UAE becomes creatime. 
 

[geared 303]

Saudi are already working to transition away from Oil, using the likes of Dubai as a template. 

 

Other Oil producing countries clearly are doing nothing, it's highly likely their economys will crash pretty hard if they don't do something sharpish.

 

 

[tinfoilhat 11]

2 hours ago, Kelvin Phlats said:

And companies for that matter. Although, I suspect we're some way off that yet.

Shell are pushing renewable and charging stations. We'll still need oil for hundreds of things - air travel, p,astics, fertiliser. We'll use oil in some capacity until the very last drop. The Saudis won't be stood there going "what are we going to do with all this oil". When it runs out there might be a bit of bother. Solar maybe?

[echo beach 581]

Manufacture glass and double glazing units.

They have lots of sand to use as raw material and sun to provide free solar energy for the furnaces!

 

echo.

[geared 303]

15 hours ago, tinfoilhat said:

Shell are pushing renewable and charging stations. We'll still need oil for hundreds of things - air travel, p,astics, fertiliser. We'll use oil in some capacity until the very last drop. The Saudis won't be stood there going "what are we going to do with all this oil". When it runs out there might be a bit of bother. Solar maybe?

 

The world isn't going electric overnight either, there's currently no viable solution for air or sea travel so plenty of customers to buy their product.

 

The issue many of the oil heavy economies face however is their Governments budgets are balanced at a certain price per barrel, many are already running into problems as they want the price nearer $100 and it's not been up there for some time now.

This has seen some develop natural Gas, which is kinda diversification I guess?

[Jeffrey Shaw 90]

Venezuela is however a basket case already.

See BBC news report today: https://www.bbc.co.uk/news/world-latin-america-55364444

Edited December 31, 2020 by Jeffrey Shaw

[Thorpist 72]

A good project the Saudis are backing is The Al Baydha Project, If this can be extended it will be good  example for the middle east countries. I recommend looking it up on you tube. 

[geared 303]

Aye, you can always count on getting the truth from YouTube videos.

[Janus 28]

Shift to green energy 'could cost oil states $13tn'

https://www.bbc.com/news/business-56017415

[geared 303]

Well you can't say they've not been warned, and with two decades in which to do something about it you'd hope they take action.

 

Anyone left fumbling around 20-30 years down the line, I doubt will find much sympathy.

Edited February 11, 2021 by geared

[Resident 1,185]

They're also rich in one type of renewable energy source, sun light and large swathes of largly uninhabitable land. 

They could build massive solar arrays in the deserts and export the electricity.