Template of your Report

(Criterion A)
Part 1: focus on the country

Chosen Country:Saudi Arabia

Which fossil fuel do they rely on:Oil

How much is the direct cost per KWH in that country:7.77 cents/ kWh.

What externalities do they face?

Economic Externalities Environmental Externalities

Advantages: Advantages
Saudi Arabia has produced
up to 3.8 billion barrels in Saudi Aramco has an
2018. Added up to their 2.2 Environment protection
billion barrels in reserved
department to ensure that
they now have earned a total
of 6 billion barrels since
the company is operates
2018. The rest of the world eco-friendly acts. Their top
thinks that the oil in Saudi priorities are the air quality
Arabia is less than it actually and clean water. They also
is. This turns the value of oil make campaign to support
up. Saudi Arabia is getting the conservation of the
richer from this. Saudi environment. They manage
Aramco, an oil company of
their waste by having a
Saudi Arabia’s government
and the world’s biggest oil
Waste Minimization
producer has revealed to Program that quickly
own a total of 270 billion recycles industrial waste of
barrels of oil in reserves. the country and protect the
environment.
In the first half of 2019, the
company earns 12% The organization is very
profit($46.9 billion). Their full
aware of oil spill. The
earnings before tax and
interest was $92.5.
company itself has never
had a major oil spill incident
Saudi Aramco has to pay a before.
heavy tax for the Saudi
Arabian government up to
50% percent of their
earnings. The government
has been providing a huge
 amount of budget to Saudi
Aramco which latest budget
revealed was at $111.1
billion. This allows the
company to make big
investments on a long term
projects other than oil such
as SMART city etc.

The salaries that are given

out to the employees in
Saudi Aramco is above
average.The company has a
good training programs,
excellent technical
infrastructure, and very
comfortable community
compound.

Disadvantages:
Saudi Aramco suffers the
most alot from of
bureaucracy, nepotism,
friendship favouritism, and
unfair treatment. There is no
real accomplishments to go
up another level in this
country. High connections
will do it fine. Sons of the top
rank will always get special
care and rights than others.
For the workers who
accomplish real quality and
work hard receives nothing
more than average and
lower. The salary for workers
are also unfair based on their
nationality. Ex. US&UK
workers get much higher
wages than other
nationalities even Saudis.
Disadvantages:
The extractions of fossil fuel is
increasing climate change
which Saudi Aramco would be
responsible for. Aramco
concerns that when using oil,
gas and fossil fuels harm the
environment more, people will
start using alternative energy
sources to lower the emissions
of carbon dioxide and the
damages made to the
environment. Even though this
will be good to the planet, it is
bad for oil companies.

Part 2: Chosen resource

What is your chosen renewable resource (be specific):Solar Energy

Why is your country suitable for that type of renewable source of energy? Focus on a specific
area. For example, if they were to build a dam for Hydropower, where in the country should they
build it? Explain in a short paragraph.
Saudi Arabia has one of the world’s highest solar irradiation in the world, estimated at
approximately 2,200 thermal kWh of solar radiation per meter square. Desertification is the
biggest environmental issue of Saudi Arabia. Use this problem and turn it into an opportunity to
even more energy for the city. We could use solar panels in the areas that are desert. It is
direct, strong sunlight and a big plain area. Best area to begin this big project would be the
Arabian Desert. The Arabian Desert is a desert in Western Asia. It stretches from Yemen to the
Persian Gulf and Oman to Jordan and Iraq. It has an area of 2,330,000 square kilometers. It is
the fifth largest desert in the world, and the largest in Asia. Other than the temperature, the
surrounding also supports big factories and industry to begin there. No one lives nearby and not
much plants or animals that could be harmed. In fact, Saudi Arabian’s governments should
really get going with solar system projects just in time for a new economy of Saudi Arabia.
Currently, Saudi Arabia’s heavy dependence on oil would come to an end as if the country
would run out of oil one day, and that people begin to lower their use of fossil fuels which
includes oil. According to Saudi Aramco’s(the national oil company of Saudi Arabia and the
world's biggest oil producer) studies, the extraction of oil and fossil fuels is increasing the
climate change. It concerns to them that this will give people another reason to stop using fossil
fuels even quicker. Afterwards, most parts of the world should be using alternative energy
sources already if they stop using fossil fuels. The point of this is to lower the emissions that is
affecting climate change and to conserve natural resources. This benefits the whole planet
environmentally, and damages or even destroys companies that work with fossil fuels
economically.

What would be the expected direct cost per KWH if the country uses your chosen type of
resource?

The average price per watt for solar panels ranges from $2.58 to $3.38

What externalities might they face if they do build the infrastructure (system) needed for your
chosen type of renewable source of energy?

Economic Externalities Environmental Externalities

Advantages:
Saudi Arabian’s government
is already planning on using
solar energy. Oil, the main
fossil fuel that the country is
relying is finite and also
polluting the environment.
Changing from Oil to solar
systems would change the
economic structure to
another path. The project is
expected to produce 200
Advantages:
Saudi Arabia is a country that
gets a lot of thermal energy
from the sun. They could use
desertification to their
advantage of solar
advancements. Pretty much
half the area of Saudi Arabia is
desert. There is no
environments nearby that
would make factories and
industries risky. No humans,
gigawatt.
Disadvantages:
The whole project takes
about $200 billion through
2030.
Back in the 1970s, Saudi
Aramco is still partially
owned by Americans
including Exxon. Exxon
advances their technology
with solar power. At that
moment, Saudi Aramco
themselves weren’t able to
provide electricity to facilities
isolated in the desert. They
cooperated with Exxon.
Solar energy have already
been used a bit in Saudi
Arabia once ago before
Saudi Arabia focuses their
economy to depend on their
oil production. After the
country is flooded with the
earnings from oil in the last
30 years, the economy
comes back to solar
systems. Many seem to
agree that the sun is
strongest in deserts and that
Saudi Arabia is best for Solar
Advancements.
Also that the slow progress
plants nor animals. The sun is
strongest in the deserts and
that Saudi Arabia would be
best place to use solar energy
to advance the country’s
technology.
Eventually, the oil production
will come to an end either by
limited resources or by the
effects of the usage of fossil
fuels to the planet’s
environment. As when that
happens, solar energy could
continue Saudi Arabia’s
economics and market easily
and would shift the country to
another level of technology.
Disadvantages:
In general, Solar Energy
factories and industries take
up quite a space. This could
cause loss of habitat and land.
The production of solar panels
uses water. Even though the
solar cells themselves doesn’t,
producing it does. In America,
the production of electricity
uses up 40% of daily fresh
water. Even though the water
could be reused, their might be
a temporary drought in certain
areas that builds solar panels.
The manufacturing of solar
panels uses toxic chemicals
such as hydrochloric acid,
sulfuric acid, nitric acid,
hydrogen fluoride,
1,1,1-trichloroethane and
acetone. Also if the panels are
not disposed properly, it could
be an environmental hazard.
Solar panels create 300 times
more toxic waste per unit of
energy than do nuclear power
plants.
 of this project is the
considerations of the
councils that by doing this, it
would damage the success
of Saudi Aramco but few
remain to see this as another
product of the country, that
the country would both be
exporting oil and gigawatts of
electricity.

Criterion D:

Compare the total cost (direct cost+externalities), which source of energy is a better option for
your chosen country? Why? Explain your answer. (TEPAC/PEEC format)

Short Term:
In the short term, oil production seems to be the best option for Saudi Arabia right now than solar
energy for two reasons. The fact that Saudi Arabia is concerned that the extraction of oil is increasing
climate change would be the first reason. However, it takes a long time for people around the globe to
change from using fossil fuels to alternative resources including solar energy. From the reserves, study
says that due to the rise of consumption, the amount of time that fossil fuels last gets shorter every time.
Saudi Arabia’s oil is estimated at 259.9 billion barrels and they would last for 90 years at the current rate
of production. Earth has nearly 1.688 trillion barrels of crude, which will last 53.3 years at current rates of
extraction.This gives Saudi Arabia an amount of time they could still export oil to other countries. In
general, oil would last up to 9 decades at current rates of extraction. Even though Saudi Arabia has
earned a lot from exporting oil, they could earn some more for they own 24% of the world's oil reserves.
As Saudi Aramco, the world's biggest oil producer and Saudi Arabia’s national oil company, successfully
exports oil for the past decades, Saudi Arabian’s government doesn’t want to damage the success of the
country’s oil exports. The costs of solar factories and industries is the second reason. The whole project
of solar energy would take $200 billion through 2030. Oil production would be a better option than solar
energy for it could still make earnings for Saudi Arabia up to 9 decades and that solar energy takes a big
investment which has to come from the government as subsides to organizations. For the good of Saudi
Arabia’s economics until oil runs out, oil production would be a better option in the short term than solar
energy.

Long Term:
In the long term, solar energy would be a better option for Saudi Arabia than what they are doing
right now which is oil production. Saudi Arabia’s economics lays heavy dependence on Oil production
which will come to an end in 9 decades and Saudi Arabian’s government has a plan for after oil
production has ended which is solar energy as the next energy source and to earn from it as they have
earned from oil. Solar panel factories and industries are estimated to cost $200 billion through 2030 and
is expected to produce over 200 gigawatts of electricity. Many of the Saudi Arabia’s councils agree on the
fact that Saudi Arabia is the best place for Solar system factories and industries. Saudi Arabia has one of
the world’s highest solar irradiation in the world, estimated at approximately 2,200 thermal kWh of solar
radiation per meter square. Desertification is the biggest environmental issue of Saudi Arabia. Use this
problem and turn it into an opportunity to even more energy for the city. We could use solar panels in the
areas that are desert. It is direct, strong sunlight and a big plain area. Best area to begin this big project
would be the Arabian Desert. The Arabian Desert is a desert in Western Asia. It stretches from Yemen to
the Persian Gulf and Oman to Jordan and Iraq. It has an area of 2,330,000 square kilometers. It is the
fifth largest desert in the world, and the largest in Asia. The sun is strongest in the deserts and that Saudi
Arabia would be best place to use solar energy to advance the country’s technology. Other than the
temperature, the surrounding also supports big factories and industry to begin there. No one lives nearby
and not much plants or animals that could be harmed. In fact, Saudi Arabian’s governments should really
get going with solar system projects just in time for a new economy of Saudi Arabia. Currently, Saudi
Arabia’s heavy dependence on oil would come to an end as if the country would run out of oil one day,
and that people begin to lower their use of fossil fuels which includes oil. According to Saudi Aramco’s(the
national oil company of Saudi Arabia and the world's biggest oil producer) studies, the extraction of oil
and fossil fuels is increasing the climate change. It concerns to them that this will give people another
reason to stop using fossil fuels even quicker. Afterwards, most parts of the world should be using
alternative energy sources already if they stop using fossil fuels. The point of this is to lower the
emissions that is affecting climate change and to conserve natural resources. This benefits the whole
planet environmentally, and damages or even destroys companies that work with fossil fuels
economically. As when oil production ends, solar energy could continue Saudi Arabia’s economics and
market easily and would shift the country to another level of technology. Like this, Saudi Arabia would be
exporting gigawatts of electricity from barrels of oil and most of the city’s electricity would be powered by
the solar panels. Solar energy would be a better option for Saudi Arabia in the long term than oil
production.

Conclusion:
All things considered, Solar would be a better option for Saudi Arabia Economically but not
environmentally. Even though it would take up to $200 billion to build solar panel factories and
advancements, the results are expected to be the next generation of technology and the world’s next
source of energy. This gives a long range energy source and technology. Solar Advancements will
happen anyway if Saudi Arabia chooses to extend the oil production or begin the solar industries just like
choosing when the next generation happens. Environmentally, Solar Energy factories and industries take
up quite a space. This could cause loss of habitat and land. The production of solar panels uses water.
Even though the solar cells themselves doesn’t, producing it does. In America, the production of electricity
uses up 40% of daily fresh water. Even though the water could be reused, their might be a temporary
drought in certain areas that builds solar panels. The manufacturing of solar panels uses toxic chemicals
such as hydrochloric acid, sulfuric acid, nitric acid, hydrogen fluoride, 1,1,1-trichloroethane and acetone.
Also if the panels are not disposed properly, it could be an environmental hazard. Solar panels create 300
times more toxic waste per unit of energy than do nuclear power plants. There is just no end to the
evolution of technology. There will always be problems and weaknesses to improve but the world needs
to move on whether is faces a big insecurity in the technology. Solar energy would be a better option for
Saudi Arabia in the future than oil production.