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Saudi Arabia targets cutting oil use in power generation by 2030
Saudi power and desalination facilities currently burn more than 1.0 million barrels per day of liquid fuel, and the IEA forecasts electricity demand will keep rising through 2030.
Saudi Arabia is planning to reduce how much oil it burns to generate electricity and run other water and industrial needs, with a goal of displacing more than 1 million barrels per day of liquid fuel by 2030, according to OilPrice. The outlet says the replacement energy mix will rely mostly on natural gas and renewables, with nuclear power potentially further cutting domestic oil consumption after 2030.
OilPrice reports that Saudi Arabia and the United States signed a 30-year civil nuclear cooperation agreement on July 22, setting the stage for U.S. companies to potentially supply reactors, nuclear materials, and technical services. The deal is aimed at expanding generating capacity, in line with projected growth in electricity demand.
The IEA estimate cited by OilPrice says Saudi electricity demand grew 3.8% in 2025, and it forecasts average annual growth of 3.1% through 2030. The summer peak in air-conditioning demand drives crude and fuel oil use for power generation, with combined burn reaching 1.42 million b/d in June 2024, the EIA data referenced by the outlet show.
OilPrice also notes that Saudi oil-fired power burn fell to 678,000 b/d on average in January and February 2025, including a February monthly low of 589,000 b/d, the lowest level for that period since 2016. The outlet adds that shifting away from domestic oil-fired generation could free up petroleum for export or other uses.
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