Saudi Arabia Seeks to Ditch Oil for Nuclear Power by 2030
Saudi Arabia is planning to free up to 1 million barrels per day of oil consumption by 2030, with natural gas and renewables set to provide most of the replacement energy. The kingdom aims to displace liquid fuels in power generation, utilities, industry, and agriculture.
The country has signed a 30-year civil nuclear cooperation agreement with the US, which will allow American companies to supply reactors, nuclear materials, and technical services. This deal is expected to reduce domestic oil consumption further after 2030 as electricity demand continues to grow.
However, actual oil displacement would be lower if nuclear generation met additional demand or displaced natural gas or renewable power. A study by the King Abdullah Petroleum Studies and Research Center estimates that nuclear power could produce firm electricity for about $60/MWh, roughly 30% less than solar paired with batteries.