Oil will run out and the Gulf states need to start now to prepare for a time when their most valuable national resource will either be finished or being sold for more valuable feedstock in a host of hydrocarbon hungry industries. In addition, to achieve global sustainability, it is clearly silly to continue to destroy one of the globe’s most flexible natural products by simply burning it in places like millions of cars, and hundreds of gas-powered generating plants.
Therefore, Saudi Arabia and other Gulf states like the UAE are right to plan to build nuclear reactors even as they pursue renewable energy sources as well. Nuclear power has the advantage of being vastly more effective in converting fuel into energy, and therefore well able to become the major source of non-oil power in sophisticated economies that demand more and more power. In time, it is possible that the renewable sector will develop technologies that might catch up with nuclear, but that is not the case today.
Then the question is where to find the right technologies for the new nuclear industries. Inevitably this becomes a very political question as anything to do with nuclear power has its potential dangers. Therefore, the Saudis have been right to prepare the ground by arranging nuclear cooperation deals with countries as wide ranging as the United States, France, Russia, South Korea, China and even Argentina. They will be able to shop around for their nuclear power and the announcement last week that the French will supply two nuclear power stations is a significant start to the Saudi plans.
It is also an interesting political choice as the Saudis did not go with their long-established ally in Washington, and may be hoping to indicate to the faltering Obama administration that Arabs can look elsewhere for support should they need to do so. It is certainly good news for French industry, which will greatly cheer the troubled Hollande administration.
