GCC Economies in an Era of Energy Transition – Third ERF GCC Conference

FromOct 30, 2023 To Oct 31, 2023

Saudi Arabia

This conference is the third since the launch of the GCC Economic Research Initiative (GCCERI) in 2019. This strategic partnership was built around a network of GCC-based public policy institutions, universities and GCC-focused researchers within the ERF research community that share ideas and collaborate on policy-oriented research. The GCCERI works on advancing economic research capacities in the GCC region by bridging knowledge gaps and addressing the region’s major economic and human development challenges.

This conference is hosted by the King Abdullah Petroleum Studies and Research Center (KAPSARC) in Riyadh during the fall of 2023. It aims to build on the previous two events and to solidify GCCERI as a regular platform for research and policy dialogue. The conference will mainly focus on diversification challenges and opportunities within the hydrocarbon sector in the light of the looming risks of stranded assets, but also the potential for integrating the hydrocarbon sector into the emerging decarbonization and energy transition regime. Moreover, the conference will also address other associated research and policy agenda, including the macroeconomic impacts of diversification and energy transition; as well as the implications of energy transition on the private sector and labor markets of the region.

The inaugural conference was launched during a two-day conference, at the College of Economics and Political Science of Sultan Qaboos University in Oman, which highlighted the economic achievements of the GCC countries during the last four decades. The GCCERI network met again virtually in March 2021 for a two-day event that discussed the economic repercussions of the COVID-19 pandemic on GCC countries and explored policy responses and lessons toward more efficient and resilient GCC economies.

Read more:

The Saudi Economy in an Era of Energy Transition, by Dr. Majid A. Al-Moneef, ERF Senior Fellow, Chairman, Saudi Association for Energy Economics.
The Economic Research Forum and the GCC Initiative | English | Arabic
Download Full Conference Agenda

Oct. 30

Agenda

Opening & Plenary 1: Energy Transition and the GCC Future Development Strategy

Date

30/10/2023

Location

KAPSARC - Saudi Arabia

Time

From 9:30 am To 11:00 am

The GCC economies had to deal with some strategic tradeoffs presented by the energy transitions and the decarbonization agenda. On one hand, if they perceive the pace of energy transition to be fast they might opt for accelerating their oil extraction to avoid being left with stranded assets. This strategy will eventually lead to low oil prices that will eventually fall below the breakeven oil price for GCC fiscal balances. Instead, should they reckon that the energy transition will likely take longer, they might target high oil rents through a strategy of coordinated management of supply. The underside risk entailed under this strategy will likely be the acceleration of the energy transition. However, energy transition itself may provide opportunities for a possibly more sophisticated, hybrid hydrocarbon-cum- renewable energy management strategy that would evolve over time toward achieving the full decarbonization agenda. Moreover, though strategies to decarbonize oil and gas production entail additional costs, which may reduce oil rents. However, they can transform the oil and gas industry from focusing only on generating rent to generating value and realizing profit margins, especially if they adopt various strategies to secure crude oil export outlets and hedge against oil demand reductions.