The impact of oil price fluctuations on common renewable energies in GCC countries

Abstract

The decline of petroleum resources is a real problem that needs to be addressed by the non-renewable energy policies applied by world governments. Renewable energies such as solar and wind sources, nuclear power, or hydrogen fuel cells may become viable alternatives to conventional fuel in the future. This study reviews the conditions of the world's leading oil producers for the coming 50 years, i.e. the Gulf Cooperation Council (GCC) countries. On the other hand, this study clarifies the share of renewable energies today and how it will continue to increase steadily.This study demonstrates that the increase in oil and shale gas production will affect the GCC countries, especially kingdom of Saudi Arabia (KSA), the largest oil exporter in the GCC. The study demonstrates that the GCC have failed in the separation between economic development and energy demand in the past decades. Therefore, the GCC economies are among the least efficient in the world. The growth in energy consumption is faster than economic growth in the region.Sustainable energy in GCC states has been considered since 2008. Resource efficiency programmes, clean technology research, alternative energy projects, green building codes, green economy strategies, and public transport systems have become a part of mainstream news. The GCC states have started to have a stake in the transition to sustainable energy. The GCC states have already undertaken some policy, projects, and sector-wide efforts. These projects, if implemented, will boost the investment, and its effect on the environment will be apparent. Many of these policies and plans, however, still exist only on paper. The green building codes and national solar targets has been discussed.