Cheap cars, supersonic jets: How Saudi Arabia plans to ‘hook’ poor countries on oil
The oil demand sustainability programme (ODSP), until now largely unknown, aims to increase the use of fossil fuel-powered vehicles and aircraft in Africa and other regions, especially as wealthier nations shift towards clean energy.
The ODSP, directed by Crown Prince Mohammed bin Salman, involves major Saudi organizations like the $700bn Public Investment Fund, Aramco, Sabic, and key government ministries. While publicly, the programme is framed as enhancing energy and transport accessibility in poorer countries and promoting sustainability, such as by providing gas cooking stoves, all the projects disclosed in the investigation involve escalating oil and gas usage.
Investigation findings
The undercover investigation, conducted by a journalist who infiltrated key meetings and spoke with insiders, paints a concerning picture. Saudi Arabia is not only resisting the global shift away from fossil fuels but is actively working to undermine climate action initiatives. This approach is highlighted by a statement from a high-ranking Saudi official, who was quoted saying, “We see no reason to transition away from oil. It has been the lifeblood of our economy and will continue to be so.” This stance is indicative of the kingdom’s broader strategy to maintain its oil-dependent economy.
Tactics employed
The report details various tactics employed by Saudi Arabia to sustain its oil industry. These include:
- A complex scheme to distribute fleets of gasoline and diesel-powered vehicles throughout Asia and Africa, aimed at capitalizing on the growing demand for these fuels in Saudi Arabia.
- Initiatives to partner with an unnamed major automobile manufacturer to create and market an affordable car for emerging economies, with the goal of boosting oil consumption for Saudi Arabia.
- Efforts to expedite the development of commercial supersonic aviation, specifically due to its tripled jet fuel consumption compared to standard aircraft.
- A strategy to oppose government incentives for electric vehicles in various countries globally.
- Proposals to promote the use of hazardous heavy fuel oil for power generation in regions of Africa and South Asia.
Lobbying against climate policies: Saudi Arabia is reportedly using its influence to lobby against international climate policies that would limit oil usage, thereby protecting its economic interests.
Saudi Arabia has professed its commitment to the Paris agreement’s climate goals, which necessitate a rapid decline in fossil fuel emissions and keeping most oil and gas reserves unexploited. However, climate policies supporting electric vehicles pose a significant threat to the oil-rich nation’s revenue.
UN’s Cop28 climate summit
The upcoming UN’s Cop28 climate summit will address the critical issue of whether countries can fulfill their commitment to reduce or eliminate fossil fuels. This year, the climate crisis has led to record-breaking temperatures and extreme weather events, causing loss of life and livelihoods globally.
Mohamed Adow, director of Power Shift Africa, criticized the Saudi government’s actions, comparing them to a drug dealer trying to get Africa addicted to harmful products. He argued that Africa should not follow the polluting path of other nations but should capitalize on its vast renewable energy potential for a true energy transition. UN Secretary-General António Guterres also called for international support to enable developing countries to transition to clean, sustainable energy pathways.
(With inputs from agencies)
