The King Abdullah Petroleum Studies and Research Center (KAPSARC) organized an international workshop to discuss the opportunity costs of oil in Saudi Arabia.
The workshop coincides with the Kingdom’s strategy to increase the efficiency of renewable and conventional energy projects, which will enable it to free up barrels of oil allocated for domestic consumption.
The workshop provides participants with key insights and ideas related to the concepts and models that can be used to calculate shadow prices for oil. The importance of calculating shadow prices lies in determining the true cost associated with domestic prices, taxes, and oil export policies.
The workshop, held in the center’s conference hall, was attended by more than 30 energy sector experts from various entities, including the Ministry of Energy, Industry, and Mineral Resources; the Economic and Development Affairs Authority of the Gulf Cooperation Council; the Public Investment Fund; as well as the Ministries of Economy and Planning and Finance, the Saudi Arabian Monetary Authority, the World Bank, the National Commercial Bank, the Organization for Economic Cooperation and Development, the International Energy Forum, and academics from Rice University in the United States and Temple University in Japan.
The workshop began with a welcome address by the Center’s President, Adam Sienski, who emphasized the role of oil in the global economy and the Kingdom’s role in stabilizing oil prices. During his remarks, he also reviewed initiatives and future research plans to help the Kingdom achieve its vision for the future.
The workshop serves as an opportunity to exchange international expertise to help clarify opportunities and challenges for decision-makers in the region and around the world; a summary of the key points and recommendations will be published on the Center’s website.
The King Abdullah Center for Petroleum Studies and Research is a global, non-profit center that conducts independent research on the economics, policies, and technologies of all types of energy, as well as related environmental studies, It focuses on finding solutions for the most effective and productive use of energy to enable economic and social progress at the national, regional, and global levels.
