Saudi Arabia is the 2nd largest crude oil producer in the region, producing 10,872,023 barrels per day. The country’s oil consumption decreased from 3.7 million b/d in 2023 to 3.6 million b/d in 2024. Saudi Arabia’s oil use for power generation fell by around 270,000 b/d in mid-2025, signaling early success in its plan to eliminate 1 million b/d of domestic oil consumption by 2030 and thereby freeing more than $150 billion in export revenues by 2035. Saudi Arabia exported 7.0 million b/d of crude oil in 2023, down 5% from 7.4 million b/d in 2022, due to lower production. Saudi Arabia’s petroleum product exports declined 8% year over year, from 1.4 million b/d in 2022 to 1.3 million b/d in 2023, while the country imports refined fuels to supplement domestic supply, particularly for the transport sector.
The Kingdom should mandate that Saudi Aramco immediately halt new oil and gas field development and reduce production by 10% every 5 years, reaching zero new extraction by 2045. This would be enacted through a royal decree from the Ministry of Energy amending Aramco’s production charter, with Aramco’s board, chaired by Crown Prince Mohammed bin Salman, bearing direct responsibility for compliance. Progress would be measured through annual independent audits of production volumes, published by the General Authority for Statistics and benchmarked against IPCC 1.5°C pathways.
Domestically, Saudi Arabia should phase out subsidies on oil and gas prices by 2030 and electrify all government vehicles by 2032, while mandating efficiency standards across heavy industry. The Saudi Energy Efficiency Center would enforce those standards. At the same time, the Ministry of Finance manages a graduated fuel price reform, cushioned by targeted cash transfers to low-income households to prevent hardship. The Saudi Electricity Company would report quarterly on the shifting fuel mix, with transport emissions independently tracked by the National Center for Environmental Compliance.
On the export side, oil revenues should be redirected into a sovereign energy transition fund, with crude export volumes cut by 15% per decade starting in 2030, losses offset by positioning Saudi Arabia as a global green hydrogen exporter. The Ministry of Energy and the Ministry of Finance would co-manage the fund, while NEOM and Aramco jointly build out the hydrogen infrastructure needed to replace oil as the Kingdom’s primary export commodity. Results would be verified through OPEC+ quota reporting and annual climate finance disclosures to the G20 Sustainability Working Group, of which Saudi Arabia is a member.
To be submitted to:
H.R.H. Prince Abdulaziz bin Salman Al-Saud, Minister of Energy, Kingdom of Saudi Arabia Contact: info@moenergy.gov.sa | www.moenergy.gov.sa
This Post was submitted by Climate Scorecard Saudi Arabia Country Managers, Abeer Abdulkareem and Amgad Ellaboudy.