Unrealistic energy policies to fuel inflation

Saudi Crown Prince Mohammed bin Salman said on Saturday more investment was needed in fossil fuels and clean energy technologies to meet global demand, and that unrealistic emissions policies would lead to high levels of inflation. unprecedented.

The prince said that Saudi Arabia had announced to increase its production capacity to 13 million barrels per day by 2027 from a nominal capacity of 12 million now and “after that the Kingdom will no longer have the ability to increase production”.

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He was addressing a US-Arab summit in Jeddah attended by President Joe Biden, who is eager to see Saudi Arabia and its OPEC partners pump out more oil to help bring down the high cost of gasoline and easing the highest US inflation in four decades.

“The adoption of unrealistic policies to reduce emissions by excluding major sources of energy will lead in the years to come to unprecedented inflation and rising energy prices, rising unemployment and aggravation of serious social problems. and security,” Prince Mohammed said.

The de facto leader of the world’s top oil exporter said Covid-19 and the “geopolitical situation” required more joint efforts to support the global economy and that the transition to sustainable energy sources required a “realistic” approach. and responsible”.

The summit brought Biden together with leaders from six Gulf Arab states and Egypt, Jordan and Iraq. Biden held bilateral talks with Saudi leaders Friday in Jeddah.

US officials said Biden will discuss energy security with leaders of Gulf oil producers and hopes to see more action from OPEC+ to increase production, but announcements were unlikely. bilateral following the talks.

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