Saudi Arabia Will ‘Diversify’ To Fight Global Warming As OPEC Pumps Oil At Record Rate

11.10.2015 | Surge Wire |

Saudi Arabia plans to diversify its economy in order to fight global warming, even as the Kingdom continues to flood the world market with record amounts of crude oil.

The OPEC leader is the last major nation to submit plans to cut carbon dioxide emissions to the United Nations before the climate summit in Paris this December. In their proposal, the Saudis say they will use more solar, wind and geothermal power. The move could reduce carbon emissions by up to 130 million tons a year by 2030, but many analysts are skeptical, according to Reuters.

“The recent pledge to develop solar power is all about politics in the Persian Gulf,” William O’Keefe, CEO of the Marshall Institute, told The Daily Caller News Foundation. “Actions that build political support from other nations serve its [Saudi Arabia’s] strategic objectives. Nothing more; nothing less.”

This news came as the International Energy Agency (IEA) reported Tuesday that OPEC’s refusal to curtail oil production has oversupplied the world market. Saudi overproduction is likely to keep the price of oil very low for the foreseeable future, exacerbating oversupply issues, devastating the budgets of Arab nations and crippling America’s recently booming shale industry.

“The decision to keep production up in spite of falling oil prices is intended to maintain and gain market share,” said O’Keefe. “It also has a political effect on Iran, which needs more production and higher prices. The falling oil prices have had an impact on U.S. shale oil production, which means that imports will go back up.”

In recent months there have been numerous reports detailing the threat cheap oil poses to Saudi Arabia’s finances, but for now their budget is low on their priority list. Experts say their participation in the Paris climate talks may be more about appearances than substantive action.

Saudi Arabia “recognizes that the goals that delegates talk about are unrealistic,” said O’Keefe. “A real agreement with actual binding reductions is an illusion.”

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