Future Investment Initiative (FII)

[M004-01] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:03:57 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

I would like to be another welcoming Saudi to our guests, some of you joined this for the first time and I hope that our young male and female have impressed you with the organization. So, I keep repeating this approach, if you really did like what you have done so far, can you join me with a round of applause for this good work? I head this time to disappoint the media, because I am not going to talk about OPEC or what we should do, and I am not going to talk about The IPO

[M004-02] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:05:12 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

It is going to come soon, as Yasser was saying, but it will come in the right time, with the right approach and definitely with the right decision, which will be a Saudi decision first and foremost, specifically Prince Mohammed’s decision. I am going to talk about the future, which is something I have the honor to play a bit of part of it, but I have a quite distinguished team which enabled me to stand here proud of their current and future good work and if I have a legacy, it will be the team, which I call them the A-Team, and I would like to invite you just by 1:00 pm, to see the chamber here which called the GCC Room ,which is so explicit. we did show it in Abu Dhabi and now we are expanding it

[M004-03] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:06:27 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

We are going to expose our own energy ecosystem, which keeps changing and I promise you that will continue to change, because the more we see technologies coming, the more we will be driven to change everything in our energy mix, the more cost cutting, the more we will change our energy mix. So, we have a great deal of adaptation to what is new and what is coming, and we would like to be more proactive player. So, we are not going to sit on our hands waiting for things to happen, we shall be the doer of our future, and we are going to be the maker of our future.

[M004-04] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:07:18 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

I am proud to have that team that will be a source of inspiration to many. I am picking an issue that again will show you how much we are prepared to meet the future and its interchange abilities and going to talk about a very crucial aspect, which is how we can live with a well endowed country as Saudi Arabia with hydrocarbon, yet we make it usable and competitive with the challenges that we are going to meet in the future, which is how to address issues of climate change. So, the concept we are going to be pushing soon at the G20, is called circular carbon economy for sustainable growth. we are face today challenges of targeting growth and development in a sustainable way. Over the last 100 years, reliable and affordable energy, mostly in the form of hydrocarbon, contributed to lifting billions of poverty, but how sustainable this current economic model can achieve what we aspire to and at what cost? The question remain how do we continue to grow and develop in a sustainable way?

[M004-05] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:09:16 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

Saudi Arabia is one of the global energy leaders and producers of over 10 million barrels per day and has around 260 billion barrels of reserves. It has been audited, by the way, internationally. It is on the top of the ten gas producers within over 900 billion cubic meters of proven gas reserves. Considering our pivotal role, it is our responsibility to find solutions through innovation and collaboration to create a sustainable framework of growth. A holistic and pragmatic approach is needed to achieve more sustainability in the economic system.

[M004-06] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:10:09 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

To this end, the Kingdom of Saudi Arabia offers the concept of circular carbon economy. The circular carbon economy is a framework where emissions of carbon, from all sectors and all type of greenhouses, are addressed through the 4 Rs; reduce, reuse, recycle and remove, such a closed loop system much like what will happen in nature will help restore the balance of carbon cycles. It offers us a new way of addressing the challenge of sustainability development that implicitly value all options and encourages all efforts to mitigate carbon accumulation in the atmosphere while also facilitate the global economic growth.

[M004-07] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:11:18 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

Additional to adoption of this holistic model, it is vital because it is important as renewables are and as much progress as they have made in recent years, most analysis suggest that the world cannot achieve a balance between sources and thinks through renewable and reduction alone. Much of the world energy is consumed in sectors that are hard to decarbonize, such as heat, industrial processes and transport, so achieving a carbon balance will inevitably include fossil fuel. However, their carbon emission must be managed. This concept is proven and not new for Saudi Arabia. Historically, the kingdom used to flare associated gas coming from oil production such as methane, but in 1980, it is started in the 70s and then we start using it in the 80s, we embarked on a major initiative to recover those associated gas and use them to produce a variety of chemicals that had enabled the petrochemical industry in Saudi Arabia to create thousands of jobs, industrial cities and to contribute to GDP growth.

[M004-08] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:12:59 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

It has also fueled our power plants and desalination plants. We estimate that more than 200 gigatons of CO2 equivalent have been removed from the atmosphere since then. Therefore, this has enabled a future economic circularity of greenhouse gases that will create value for carbon while meeting global sustainability goals. For us, transformation being from within. The Kingdom is putting its resources behind the circular carbon economy by investing heavily in new energy and efficiency solutions. For the world, in fact, Saudi Arabia is reforming its entire energy ecosystem, which I just alluded to, this includes the development of several programs such as power system integration, while working on restructuring the sector to make it more efficient through several initiatives such as displacement of crude and other liquids ,utilization of smart metering and smart grids.

[M004-09] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:14:26 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

The diversification of the kingdom energy mix, establishment of critical institutions, increasing focus on research and development and technology deployment will really help, by the existence of KAUST, KACST, KABSARC and the University of Petroleum and Minerals, which I belong to and I think we will be collaborating with whoever has any additional technologies that can be part of that solution. We have also been focused on improving energy efficiency, industry building and transportation, which makes up 94% of the kingdom energy use. Impressive results have been achieved, since the establishment of Saudi energy efficiency seek, the Kingdom has reduced energy intensity by about 8%, during a similar period energy intensity in the petrochemical sector was reduced by nearly 3% and in steel industry by about 2%. The average fuel economy passenger vehicles improved by 11%, while the efficiency of air conditioning units improved by 57%.

[M004-10] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:16:00 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

The government decided to lead, by example, by launching an energy service company which is currently overseeing the retrofitting of thousands of its building, as well retrofitting 1 or 2 million of streetlights through working with the private energy service company, which they are dubbed ESCos, since the establishment of the super ESCos company, which is a PIF company, the number of Energy Service Companies grew tenfold from 4 businesses to more than 40 companies providing energy efficiency solutions. The energy efficiency program has recently been expanded to include the supply side of electricity, water, desalination and in addition to feedstock use in industrial processes.

[M004-11] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:17:05 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

The Kingdom has taken bold steps in energy price reforms starting in 2016. By changing the prices of all key energy product, we have developed a price reform plan that will rationalize consumption while ensuring the sustainability of economic growth. We believe that these efforts combined would reduce Saudi Arabia local demand by as much as 2 million barrels of oil equivalent by 2030 compared to the previous projections and most of it will be in liquid and we prefer to export it than to abuse it by an inefficient use of resources. The Kingdom currently operates the largest carbon capture and utilization plants in the world, turning half a million tons of CO2 annually to products such as fertilizers and methanol and SABIC is also doing a great job in that endeavor as well as Aramco. We also operate one of the regional most advanced CO2 enhanced oil recovery plan that capture and store 800,000 tons of carbon dioxide annually.

[M004-12] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:18:28 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

Furthermore, we have a plan to deploy additional carbon capture utilization and storage infrastructure for kingdom waste. We believe that nature-based solution will play an important role in removing carbon as part of the circular carbon economy. Recognizing this we are taking action to achieve these goals, including expanding our mangrove forests, plantation ,Seagrass, meadows and coral reef in both the Red Sea and the Arabian Gulf, as you just have seen from CEO of the Red Sea Company. The circular carbon economy is a concept that is embedded in natural order of the world, With the 4 R’s, it become less challenging to achieve growth and development, while realizing sustainability. We recognize that the achievement of the circular carbon economy is a grand challenge, but this challenge will ultimately create an unprecedented opportunity, which are quite few and no single country or private sector entity can do it alone.

[M004-13] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:20:00 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

Saudi Arabia hosts the G20 next year, and one of our main focus will be on energy access and development, as well as on sustainable and integrated clean energy system. This will provide the backbone for delivering a circular carbon economy and will lead to achieving the global development and climate goals. As I like to say that life is based on carbon, and obviously, carbon is not the enemy, After all, our bones are formed of carbon and with the circular carbon economy, Carbon would be the opportunity.

[M004-14] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:20:55 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

This is our call to action and we look forward to your collaboration and investment in all sectors to support the circular carbon economy as well as our vision of 2030 goals. I would like to extend again my thanks for your receptive ears and I apologies to the media, but I think spending more time about our future is much more important than today's affairs.

[M004-15] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:21:05 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

Thank you very much indeed.

[M004-17] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:33:00 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

I would not let it slip. As you were talking, I was just scribbling the letter of invitation Texas to become an OPEC country.

[M004-19] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:33:14 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

If Independence Day happens.

[M004-23] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:40:58 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

Well, I am very grateful for the kind words that I have received, but again, I would like to stress to meet the team that I have the honor of working with; they are the movers and shakers and I am merely their mouthpiece, they tell me what to do and what to read, they are extremely opinionated, They win the day when it comes to arguing and I enable them to do that.

[M004-24] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:41:36 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

So, I advise everybody for any challenge that you meet, make sure that you go bottom up and make sure that you bring the best and brightest young people that have graduated from universities and have had different education and different training, giving them the chance to make their own future. You could give them an advice here and an advice there, but believe me, I have learnt from them. What is more important for us to recognize, is that future is their future, not ours, giving them the ability to handle their own future, to make their own future, and to enable them to do that with an ecosystem that can bring the best of them would be the best basis for reaching out to solutions to mitigate or solve any future problem. These things are not going to be happened by me or Secretary Rick Perry, we are here just to enable those young cadets.

[M004-26] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:46:00 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

I made that suggestion, as I said this suggestion is there, I just read it. They think that they will do it, they think that they will meet the challenge and I think it is the correct way in demonstrating how much we are trying to adapt to the new realities.

[M004-27] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:46:24 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

Realities of the day that we have to energize the world, but also we have to energize it in a sustainable manner. Definitely, with technology, carbon is a resource, it is not something that we should throw and just emitted. Actually capturing it makes money and as you progressively monetize it, the amount of sequesterization that will do will be less and with sequesterization, you could use it for pumping more hydrocarbon in the form of oil and gas, it is a win to win situation.

[M004-28] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:47:13 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

We need a fair playing field, we should be open internationally to all technologies that can bring solutions, we should not be biased towards oil, gas, or even coal or renewable and we have to have an open playing field. More important, as Andrew was saying, we will come soon with a suggestion on carbon trading, that would be a fair carbon trading system, learning from the European version, which did not work. Why it did not work? Because it was the bottom, but we are reversing the order we are going to go bottom up and I think it would work.

[M004-29] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:58:35 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

We are so fortunate in this country because if you go lithium, we have lithium, if you go solar, we have silicon, as we have always been the most reliable supplier of oil, and we could be the most reliable supplier of solar energy and the most reliable supplier of material that can be used for lithium. So, we are going to be in the news for quite some time and I would quote the phrase of President Bush say “watch and learn” and we will designate.

[M004-31] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:59:52 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

Well, as I said, you know that we are launching this commensurate with hosting the forthcoming G20 an d We are hoping that the G20 adapting with that thing; The global problems have to have a global solutions, and it has to come in a multifaceted way, i.e. everything the governments, the industry and the research institution and there should be a kind of an arrangement where it can plug everybody into a holistic way of attending to this issue. Certainly this concept would never move forward without enablers, that generate a kind of an ecosystem for it to prosper and grow.

[M004-32] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 01:00:49 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

But the most important enabler in all of this is that sense of, as the French would say, égalité, which is an egalitarian approach of who is responsible about what and what share one needs to assume responsibility for and sharing concept where people, as they participate in these endeavors, they would have that sense of ownership and ability to benefit from it.

[M004-33] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 01:06:08 · Future Investment Initiative (FII) · 2019-10-30 · مشاهدة عند هذا التوقيت

We are going to go ourselves with the world or without the world, we would like to be the most proactive party in this endeavor and we would like to become the model and we shall setting the model, getting people to see and realize that you have succeeded with it would be probably the best way to proceed with it first.