Saudi Arabia Aims to Free Up 1 Million Barrels Per Day by Investing in Nuclear Power
Saudi Arabia plans to reduce domestic oil consumption by more than one million barrels per day (b/d) through a combination of natural gas, renewables, and nuclear power. The country's electricity demand is growing rapidly—3.8% in 2025—and the government aims to replace liquid fuels used for power generation with cleaner alternatives. A new U.S.-Saudi civil nuclear cooperation agreement signed on July 22 opens the door for American companies to supply reactors, materials, and services. The kingdom is also expanding its unconventional gas production through projects like Jafurah and targeting up to 130 GW of renewable capacity by 2030. While nuclear power may not contribute significantly before 2030 due to delays in vendor selection or construction timelines, it could provide stable low-carbon electricity at a competitive cost compared to solar with batteries. A proposed first commercial reactor near Duwaiheen would have up to 2.8 GW of capacity and potentially displace around 105,000 b/d of crude oil annually if used entirely for replacing oil-fired generation.
Topics: energy transition nuclear power oil consumption reduction Saudi Arabia U.S. cooperation