The Ministry of Energy is the entity responsible for overseeing all aspects of the activities and works related to the energy ecosystem in the Kingdom of Saudi Arabia, including oil and gas exploration and use activities. It is primarily responsible for monitoring the works of oil exploration and production companies, including monitoring the Hydrocarbons Strategy (oil and gas, refined products, and petrochemicals) and the Electricity and Renewable Resources Strategy, such as refractories and complementary energy.
The strategic objectives of the Ministry of Energy
- Leadership in energy markets.
- Security and reliability of supplies.
- Maximizing financial benefits.
- Efficiency in consumption and economic development.
- Enhancing local content.
- Carbon management.
Establishment of the Ministry of Energy
Regulating the work of the oil sector in the Kingdom dates back to the reign of the Founder, King Abdulaziz Bin Abdulrahman Al Saud when the Public Works and Minerals Authority was established in 1935 under the Ministry of Finance. This was followed by the establishment of the General Directorate of Petroleum and Mineral Affairs in 1952. The directorate was converted to a ministry named the Ministry of Petroleum and Mineral Resources in 1960. The ministry kept its name for around fifty-seven years before being amended to the Ministry of Energy, Industry, and Mineral Resources in 2016. In 2019, the name was changed to the Ministry of Energy according to a Royal Decree, while a new ministry, known as the Ministry of Industry and Mineral Resources, was established.
The Ministry of Energy manages its affairs from its headquarters in the capital, Riyadh. Its minister, who is a member of the Council of Ministers, is appointed according to a Royal Decree.
Over nearly sixty-three years since its establishment, six ministers ran the Ministry of Energy until 2023. Engineer Abdullah Bin Hamoud al-Tariki was the first to assume the office of the Minister of Petroleum and Mineral Resources in 1960, during the reign of King Saud Bin Abdulaziz Al Saud.
The petroleum and gas energy sector is the pillar of the Kingdom's economy. The ministry's strategy in this respect entails the best utilization of hydrocarbon resources to achieve the sustainable development of the national economy.
Research centers in the Ministry of Energy
The Ministry of Energy supervises several research centers and training institutes that it established during the developmental stages of its operation, including the King Abdullah Petroleum Studies and Research Center (KAPSARC), the Saudi Petroleum Services Polytechnic, and the Higher Institute for Plastics Fabrication.
The Kingdom, represented by the Ministry of Energy, adopts a policy of organized production as it is the most important and largest oil country in the world in terms of reserves, production, exports, and refining capacity. The Kingdom's fixed oil reserves are estimated at around 267 billion barrels, accounting for more than 20.5 percent of the global reserves. It also has a refining capacity of more than 5.8 million barrels per day both locally and globally. The Kingdom's petroleum production capacity per day is estimated at 12.7 million barrels, accounting for 12 percent of global production.
The role of the Ministry of Energy
The Ministry of Energy assumes numerous roles, mainly: it follows up, analyzes, and evaluates research and studies submitted by operating companies and monitors oil and natural gas production to ensure compliance with the set policies. It also analyzes information and prepares studies on petroleum relevant to local and global production, prices, supply, and demand, in addition to representing the ministry in relevant committees.
The Ministry of Energy undertakes several roles, overseeing and regulating activities in the petroleum, gas, refining, and petrochemical sectors. It also focuses on the development of the electricity sector with its diverse sources (traditional, renewable, and nuclear), regulating companies operating in this sector. Additionally, the ministry works on increasing localization and developing local content in the energy sector, contributing to Gross Domestic Product (GDP) growth, providing job opportunities for human capital development, improving the kingdom's balance of payments, identifying potential risks in the energy sector system, and developing plans to manage risks and respond to emergencies and potential crises.
Furthermore, the Ministry of Energy manages the climate change file, participates in setting strategies for traditional energy, monitors related initiatives, develops environmental systems and policies related to the energy sector, supervises the implementation of the carbon circular economy framework, and develops carbon capture, utilization, and storage technologies. It also oversees international relations by activating the kingdom's role in joint committees, coordinating councils, and international organizations related to the ministry's work.
The ministry provides the necessary support for implementing initiatives and applications, improving information technology infrastructure, managing the portfolio of digital transformation projects and information technology for the ministry, and managing information technology services for external institutions, and internal and external clients.
Entities within the energy system
Ministry of Energy.
King Abdullah City for Atomic and Renewable Energy.
Ministerial Committee to Restructure the Electricity Sector and Saudi Electricity Company.
National Committee for Clean Development Mechanism.
National Center for Energy Efficiency.
Hydrocarbon Demand Sustainability Program.
King Abdullah Petroleum Studies and Research Center.
Nuclear and Radiological Regulatory Authority.
Water and Electricity Regulatory Authority.
National Carbon Circular Economy Program.
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