Oil and Global Warming in Saudi Arabia

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Oil and Global Warming in Saudi Arabia

Oil has been identified as a very important resource; it provides a lot of significant benefits to mankind. It is used for numerous purposes such as transportation, heating, electricity production, and industrial applications. It has a high energy density which makes it an efficient fuel source plus the fact that it is fairly easy to transport and store. Its versatility is of great importance, and this is proven by being by most valuable commodity in world trade (O’Rourke & Connolly, 2003,).

According to Doyle, it is estimated that two billion dollars switch hands in petroleum transactions, making it the world’s first trillion dollar industry (cited in O’Rourke & Connolly, 2003). Oil is very profitable for corporations as well as for governments since oil taxes generate a lot of income. Oil is important for the national economic viability of Saudi Arabia as it accounts for more than 80 percent of total national exports. Other countries that are dependent on the oil business are Libya, Kuwait, Iran, and Venezuela (O’Rourke & Connolly, 2003).

Environmental Effects of Oil Oil transport, refining, exploration, drilling, and extraction have had negative effects on the environment, but much attention has recently been focused on the negative environmental impacts of the use of oil. It is widely believed that burning fossil fuels contribute to global warming since carbon dioxide, an abundant greenhouse gas, is produced as oil is burned. Findings of the Intergovernmental Panel on Climate Change indicate that around three quarters of total carbon dioxide emissions come from fossil fuel use (O’Rourke & Connolly, 2003).

To be able to fully understand the how oil use affects global warming, it is necessary to get a clear understanding of the greenhouse effect. The greenhouse effect is a natural phenomenon. Imagine a greenhouse and that is just how the greenhouse effect works. Greenhouse gases such as carbon dioxide, water vapor, methane, and ozone trap heat thereby slowing its escape from the atmosphere. The dramatic increase in the release of greenhouse gases has brought about an abnormal increase in the average world temperature already estimated at around 1 percent at the turn of the century.

However, without the greenhouse effect, the Earth would be too cold to sustain the currently thriving ecosystems (West, 2008b). Due to the fact that oil is a widely used resource and that oil produces significant amounts of carbon dioxide as it “generates roughly 30 percent more carbon dioxide from every unit of energy produced,” it can be inferred that dependence on oil has extensively contributed to global warming (Barry & Frankland, 2001, p. 362). Importance of Oil to Saudi Arabia In all parts of the world, oil is considered as an important resource especially in modern life.

“Any measures to reduce oil consumption were hampered by powerful opposition of certain governments and inter-governmental organizations” (Barry & Frankland, 2001, p. 362). Oil is particularly of great importance especially to members of Organization of Petroleum Exporting Countries (OPEC) since it constitutes a great part of the income of member countries. Saudi Arabia is a member of the OPEC including Algeria, Angola, Ecuador, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, United Arab Emirates, and Venezuela.

Saudi Arabia may be considered as the most important oil producer since it produces large amounts of oil as it accounts for 13 percent of the world’s total oil output. It makes up 35 percent of the OPEC’s total oil production in 1991. Saudi Arabia has also been identified as the “swing producer” of oil since it has the capacity to affect the level of supply and demand as well as affect international oil prices. Oil is important to Saudi Arabian economy as figures in 1991 pointed out that oil accounted for 73 percent of the country’s revenues.

90 percent of total oil exports in 1991 come from Saudi Aramco (Country Studies). However, data from Beyond Petroleum Statistical Review of World Energy shows that despite the knowledge of the implication of oil in global warming, the consumption still increased—the 3163. 5 million tonnes consumed in 1992 jumped to 3462. 4 in 1999 (Beyond Petroleum, 2008). Carbon Dioxide and Climate Change Despite the great number of proponents pointing to global warming as a real environmental threat, Idso and Idso (2008) indicate that it is “highly unlikely” that increases in carbon dioxide emissions will lead to global warming.

They cited numerous arguments that would disestablish the link between the global warming and greenhouse gas emissions. They primarily indicated that there is a “weak short-term correlation” between carbon dioxide and temperature increase. Thus, the emissions may not be the likely cause of any warming that is being experienced or will be experienced. Even as both temperature and carbon dioxide emissions have increased, this does not necessarily mean that the two are interrelated.

To identify a clear causal relationship, the presumed cause must precede the presumed effect. Several cycles of increase and decrease must also be present in order to make a concrete judgment that the two factors indeed affect each other. They also indicated that “a strong negative climatic feedback” will prevent any catastrophic warming from manifesting. These play a major role in the planet’s climate system but are totally ignored by scientists lobbying for the existence of global warming.

They cited numerous other factors that would disprove the existence of global warming. II. Saudi Arabia The Oil Industry The Saudi Arabia landscape is characterized by the presence of several multi-million dollars worth of infrastructure created to support the oil production capability of the country. These infrastructures are costly investments made by different companies. The effort to contain the emission of carbon dioxide from oil manufacturing and processing sources has different impacts, particularly in economics.

Another “important issue concerns taxes and duties on oil products consumed in oil-importing countries as well as environmental taxes and duties on emissions of carbon dioxide, aimed at curbing oil demand and potentially harming oil exporters’ revenues” (Noreng, 2006, p. 16). Oil production felt a decline. In 2002, daily oil production in Saudi Arabia was 8,928 thousand barrels, and this steadily climbed to 11,114 thousand barrels in 2005. However, this dropped to 10,853 and 10,413 thousand barrels in 2006 and 2007, respectively.

Last year, Saudi Arabia’s total oil output dropped by 440,000 barrels per day and is the largest decline in the world last year. In addition, the whole of the Middle East produced 25,176 thousand barrels daily in 2007. The Middle East is also the world’s largest oil producer and holds the highest share in the world’s remaining oil reserves at 21. 3 percent with 264. 2 thousand million barrels. In measuring oil consumption, Saudi Arabia does not consume as much with 2,154 thousand barrels daily. The United States is the largest oil consumer with a consumption rate 20,698 thousand barrels per day (Beyond Petroleum [BP], 2008).

Saudi Aramco and the Environment Saudi Aramco or Arabian-American Oil Company, which is based in Saudi Arabia, is the world largest oil company. It produces the most quantity of oil and also leads the count with its oil reserves. It has 102 oil and gas fields within its grasp as of the middle part of 2007. Its oil reserves amount to 259. 9 billion barrels and it produces 8. 9 million barrels per day. Its oil exports for the year 2006 amount to 2,541,692,569 barrels (Country Studies, 2008). Saudi Aramco has unveiled that it would help fight global warming through cutting carbon dioxide emission in the oil and gas business.

Experts indicated that persuading Saudi Aramco to fight against global warming is a big step forward since it is the world’s largest oil producer. Saudi Aramco president and Chief Executive Officer Abdallah Jum’ah told a panel from 163 nations in a meeting in Germany about expanding the Kyoto Protocol that “the petroleum industry should actively engage in policy debate on climate change as well as play an active role in developing and implementing carbon management technologies” (Hammond, 2006, n. p. ). He clearly indicated that national oil players such as Saudi Aramco can make great contributions in forwarding anti-climate change efforts.

During the meeting, Robert Socolow from Princeton University also indicated that 40 percent of the increase in carbon dioxide emissions comes from the oil industry. He also indicated that the oil industry is the major cause of global warming. Aramco officials also stated that research and development effort have already leaned towards removing or reducing carbon dioxide omissions coming from oil (Hammond, 2006). Saudi Aramco has expressed that it cares for the environment such that it has an Environment Protection Department that provides leadership on environmental issues and its operations are always environmentally responsible.

Saudi Aramco considers the environment as a basic responsibility and a company commitment. The company has developed a variety of operational requirement that give consideration to environmental impacts such as “sanitary codes, project environmental assessments, air and water quality standards, occupational health regulations, hazardous material communication guidelines, waste management procedures, and vital oil spill contingency plans” (Saudi Aramco, 2008). The Environmental Impacts of Oil Oil has always been an environmental issue.

From searching for oil, refining it and until its usage, it is always regarded as an environmental threat. Oil exploration and drilling are the first phases in the oil life cycle. It is also referred to as the “upstream phase” (O’Rourke & Connolly, 2003, p. 593). Drilling and extracting oil affect the natural ecosystems, human health, as well as local cultures. It does not matter if the drilling is on-shore or off-shore; the effects are just the same. The physical modifications in the environment caused by oil exploration, drilling, and extraction are so devastating that they could be more harmful than a large oil spill.

The more devastating effects of these are “deforestation, ecosystem destruction, chemical contamination of land and water, long-term harm to animal populations (particularly to migratory birds and marine mammals), human health, safety risks for neighboring communities and oil industry workers, and displacement of indigenous communities” (O’Rourke & Connolly, 2003, p. 593-594). Oil exploration requires heavy equipment, and moving these equipment results in deforestation and erosion. Mobile rigs used for temporary drillings can reach weights of over two million pounds.

On the other hand, drillings make use of large amounts of water and also contaminate it in the process. It is released afterwards which leads to the contamination of land. Exploration and extraction have also been known to produce large volumes of drilling wastes and associated wastes. In addition, oil processes make use of a waste pit where chemicals and other wastes from the oil process are being dumped. Exposure of these oil pits is a threat to aquifers as well as to animals and birds. They can mistake the pits for water holes, therefore engorging themselves in chemical waste.

Exploration, drilling, and extraction also lead to a variety of health risks for humans. These risks may arise from radioactive materials that have surfaced from drilling as well as the bioaccumulation of oil, mercury, and other hazardous elements in animals that are consumed by humans (O’Rourke & Connolly, 2003). Oil Spill Threat In order for oil to be delivered to different parts of the world, oil transport is necessary, and the main mode of oil transport is through oil tankers. However, moving oil using pipelines is becoming vastly popular.

Oil currently accounts for half of all sea cargo and oil pipelines now spread more compared to railroads. Oil transport has also led to an environmental threat known as oil spills. Large oil spills receive much attention particularly because of media coverage; however, small cumulative spills go undocumented and measuring the amount of oil spillage from these proves to be significant. Accidents have been known to occur at all segments of transport as well as at each point of transfer. Also, since the 1960s, at least one large-scale oil spill has been documented every year (O’Rourke & Connolly, 2003).

Ocean transport of crude oil and petroleum products accounted for 3,000 gallons spilled per billion ton-miles in 1983 and nearly 8,000 gallons per billion ton-miles in 1984. Pipeline spills contributed less than 100 gallons per billion ton-miles for both years. (O’Rourke & Connolly, 2003, p. 599) Oil spills have also been known to occur during extractions. A 2002 estimate by the National Academy of Sciences indicated that 38,000 tons of petroleum hydrocarbons from oil and gas operations were released into the world’s oceans (O’Rourke & Connolly, 2003, p.

595). Saudi Aramco Oil Spill Contingency Plan Saudi Aramco has always been responsible in handling oil spills such that it has developed a contingency plan against to help counter oil spills. Saudi Aramco’s first focus on handling oil spills is being self-sufficient. It “built specialized oil spill recovery and containment vessels, and purchased equipment and materials to combat spills” (Zaindin, 1996, p. 2). In 1989, it even designated a committee to review and assess the anti-oil spill capabilities of the company.

The task force made recommendations which were called the Global Oil Spill Contingency Plan which (1) “establish[ed] an oil spill policy for [the company’s] worldwide operations,” (2) “direct[ed] Saudi Aramco and its affiliates to join major cooperatives and assign[ed] regional responsibility for oil spills” and (3) “require[d] the development, implementation, and maintenance of regional and owned tanker oil spill plans” (Zaindin, 1996, p. 2-3). Saudi Aramco has also established an Oil Spill Committee in 1990 and this committee instituted a policy for the prevention and cleanup of oil spills resulting from the company’s operations.

The Global Oil Spill Coordination Group was created to put into action and coordinate company activities that address the oil spills. If an oil spill takes place, a Regional Oil Spill Coordinator cleans the oil spill with the aid of an Oil Spill Response Team. The director takes care of the spill and is responsible for safe and efficient control, cleanup operations, disposal, restoration, as well as documentation processes. The response team is always ready as they receive special regular trainings (Zaindin, 1996, p. 3-4).

Equipment that could effectively handle small to medium-sized oil spills have been stationed at the vicinity of the Red Sea and in case of any large oil spills, additional resources will be brought to immediately address the threat. Saudi Aramco has also inked ties with organizations that provide cooperative assistance in case of oil spill, namely, the Oil Spill Response (OSR) Ltd. based in England, Clean Caribbean Cooperative (CCC), Marine Preservation Association (MPA), Marine Industry Repsonse Group (MIRG), and the Gulf Area Oil Companies Mutual Aid Organization (GAOCMAO) (Zaindin, 1996, p.

4). III. Involvement Saudi Arabia and Japan Saudi Arabia has been involved in a lot of international treaties. One of these treaties was signed with Japan when both countries, among other things, acknowledged the importance of the stability of the world oil market as well as the importance of adopting security measures against global warming (Ministry of Foreign Affairs of Japan, 2007). Both sides reaffirmed the importance of the stability of the world oil market.

The Japanese side expressed its appreciation and understanding for the Saudi Arabia’s balanced oil policy, which is a secure and reliable source for providing oil supplies to the international markets in general, and to the Japanese market in particular…while stressing the significance to further promote bilateral cooperation in energy, based upon mutually complementary relationship between Saudi Arabia, with its largest hydrocarbon resource in the world, and Japan, with its advanced energy-related technologies.

The Saudi side expressed its intention to continue to assure stable oil supply to Japan, and the Japanese side expressed its appreciation for this (Ministry of Foreign Affairs of Japan, 2007). Both sides [also] decided that the international community should adopt appropriate measures against a possible global warming, based on the principle of common but differentiated responsibilities as stated in the international agreements on climate change.

In this regard, the Japanese side expressed its willingness to develop its cooperation in both levels of government and private sectors to promote the clean development mechanism (CDM) that contributes to combating the possible global warming as well as achieving sustainable developments in the Kingdom of Saudi Arabia. Both sides reaffirmed the importance of the roles of the private sectors in both countries for promoting CDM projects (Ministry of Foreign Affairs of Japan, 2007). Saudi Arabia should use the power of the law, as well as submit to the rule of international law, in order for efforts versus global warming to be successful.

“Law plays an important role in environmental protection at both the international and the national levels” (Chopra, Leemans, & Kumar, 2005, p. 41). However, a drawback to this concept is the fact that Saudi Arabia itself shows signs of not being fully amenable to the stipulations of several international agreements and international laws on global warming. “Some OPEC countries (e. g. Saudi Arabia and Kuwait) also opposed the FCCC (Framework Convention on Climate Change) for fear of its potential impact on the price of crude oil” (Alexander & Fairbridge, 1999, p.

637). The Clean Air Act and Addressing Global Warming The Clean Air Act is a law that has been passed by some countries in a hope to control air pollution and greenhouse gas emissions. Numerous developed countries such as the United States, Canada, and the United Kingdom have adopted such laws and even some third world countries have done so. Saudi Arabia has yet to adopt such a law. In the United States, the Clean Air Act is a federal law which means that its coverage spans the whole country and it has been an effective tool in regulating greenhouse gas emissions.

The Environment Protection Agency (EPA) plays a crucial role in regulating processes regarding the law such as setting limits on certain air pollutants. The Clean Air Act which resulted in reduced air pollution has improved human health as well as the status of the environment. Since 1970, the six common air pollutants have been reduced to 50 percent while air toxics from large industries including oil refineries have been reduced by 70 percent. Additionally, new cars are 90 percent cleaner and are expected to be a lot cleaner in the future. Ozone depleting chemicals such as CFC’s have also ceased production.

This all happened while the economy prospered and energy and vehicle use increased (EPA, 2008). The same benefits could possibly be reaped if Saudi Arabia would adopt the same policies. The 2007 Climate Change Performance Index indicated that Saudi Arabia is at the bottom of the list when it comes to addressing global warming followed by the United States, China and Malaysia. Sweden, Britain and Denmark were identified as the countries that have been doing the most to prevent further global warming. Nevertheless, the report indicated that what Sweden, Britain and Denmark are doing are not enough to prevent further climate change. IV.

Organizations Different organizations and alliances take part in addressing global warming, like the Kyoto Protocol and the WTO. While Saudi Arabia is an active international player, it is not always in agreement with the rest of the group. Referring to the act of non compliance to the Protocol’s instituted policies, Grosse (2005) stated that “Saudi Arabia has been among the non-Annex I countries that have been particular to the Protocol” (p. 155). “The issue of subsidies favoring the coal, nuclear renewables sector has been raised by Saudi Arabia in the WTO’s Committee on Trade and Environment,” according to Yamin and Depledge (2004, p.

256), in reaction to the WTO policies. The Kyoto Protocol The Kyoto Protocol is one doctrine that binds nations that have ratified it to help fight against global warming by reducing their emissions of six greenhouse gases, namely, carbon dioxide, methane, nitrous oxide, sulfur hexafluoride, HFC’s and PFC’s. It was instituted in Kyoto, Japan on December 1997 and was opened for ratification on March 16 of the succeeding year. The main goal of the Kyoto Protocol is to reduce greenhouse gas emissions to 5. 2 percent below the 1990 greenhouse gas emission levels from 2008 to 2012.

Countries that have bound themselves to the protocol must adopt certain policies and strategies in order to meet the specified emission targets. However, the protocol has been subject to a lot of debate because it exempts developing countries, such as China and India as well as Saudi Arabia, from having emissions cuts. The United States refused to ratify the Kyoto Protocol because of the exemption of the developing countries. US President George W. Bush also stated that they will not sign the protocol because it does not bind developing countries and that it would be harmful to the US economy (West, 2008a).

Late in 2004, the government of Saudi Arabia has approved of the Kyoto Protocol, but being a developing country, Saudi Arabia is not bound to adopt any cuts on greenhouse emissions although it is expected that the Saudi Arabian government will suffer huge financial losses as the developed countries approve the protocol. According to Saudi Oil Minister Ali al-Naimi, the government will have accumulated losses amounting to $19 billion by 2010 because of the policies that the developed nations will adopt in order to reduce their emissions to meet the specified targets (Planet Ark, 2004).

Carbon Capture and Storage Carbon Capture and Storage (CCS) is one approach that scientists are looking at which could probably help mitigate global warming. It has been regarded that CCS will reduce the costs associated with mitigating climate change as well as provide flexibility in attaining greenhouse gas reduction goals. CCS makes use of new technology. It collects and concentrates the carbon dioxide produced in industrial and energy related sources and transports it to a storage location where it will be kept away from the atmosphere.

This would allow the use of fossil fuels such as oil with a minimum level of greenhouse emissions (Metz, Davidson, de Coninck, Loos, & Meyer, 2005). Geological storage is one form of CCS. It is done by injecting carbon dioxide in dense form into rock formations underground. Porous rock formations have great potential in storing carbon dioxide. Such rock formations may include those that previously hold oil and natural gas. This kind of carbon storage is already being used in three industrial sites, namely, the Sleipnir Project in the North Sea, the Weyburn Project in Canada and the In Salah Project based in Nigeria.

Moreover, 30 megatons of carbon dioxide per year is injected for Enhanced Oil Recovery (EOR). This is mostly in Texas and the United States. This system of carbon capture and storage makes use of almost the same technology used for the exploration and production of gas (Metz, et al. , 2005). Geological storage may however be associated with some risks. Leakage from stored carbon dioxide may provide certain risks which are classified as either global risks or local risks. Global risk is identified as the release of carbon dioxide which will have significant effects on global warming.

On the other hand, carbon dioxide leakage may also expose humans, ecosystems and groundwater to certain risks. These are the local risks (Metz, et al. , 2005). Annex 1 shows an overview of geological storage. Annex 1: Overview of Geological Storage Another type of carbon storage is ocean storage. It is done by injecting captured carbon dioxide at depths of greater than 1,000 m. under the ocean. This would isolate the carbon dioxide from the atmosphere for centuries. Consequently, the stored carbon dioxide will become part of the global carbon cycle.

However, just like geological storage, ocean storage also has certain risks such that it can cause a great deal of harm. Studies have indicated that animals have been found with reduced rates of calcification, reproduction, growth, circulatory oxygen supply and mobility, and even an increased mortality rate. Annex 2 shows detailed information on Ocean Storage (Metz, et al. , 2005). Annex 2: Overview of Ocean Storage Mineral carbonation and industrial use is yet another form of carbon capture and storage.

Mineral carbonation makes use of converting carbon dioxide into solid inorganic carbonates through some form of chemical reaction. Mineral carbonation is actually a natural earthly process called “weathering” but human intervention needs to hasten this process since it is too slow to become a viable carbon storage system. Industrial use involves using carbon dioxide “directly or as a feedstock for production of various carbon-containing chemicals” (IPCC, __, p. 39). Industrial use makes use of chemical and biological processes wherein carbon dioxide is utilized as a reactant.

The industrial use of carbon dioxide can help keep carbon dioxide out of the atmosphere by instead diverting it into a “carbon chemical pool”, but this measure will only be of great benefit to preventing climate change if there is a significant amount of carbon dioxide taken away from the atmosphere. Refer to Annex 3 for more detailed information (Metz, et al. , 2005). Annex 3: Mineral Carbonation and Industrial Use Saudi Arabia and the Organization of Petroleum Exporting Countries (OPEC) have expressed support with the development of this technology. Norway also demonstrated great interest with Carbon Capture and Storage technology.

Norwegian Oil and Energy Minister Aaslaug Haga has requested the support of the Saudi Arabian government in the development of CCS to which Saudi Oil Minister Ali al-Naimi responded eagerly. Dagens Naeringsliv quoted al Naimi saying that “both Saudi Arabia and Norway are concerned about the environment and want to reduce emissions with all possible means. CO2 capture and storage is an excellent way to reduce emissions” (Acher, 2008, n. p. ). These countries want carbon capture technology included in the Clean Development Mechanism so that industrialized countries can cooperate to help advance this technology (Acher, 2008).

According to the European Technology Platform on Zero Emission Fossil Fuel Power Plants, it is the lack of funding which impales research on carbon capture which then limits its potential (Kanter, 2008). The King of Saudi Arabia announced that the Saudi Arabian government will shell out 300 million USD for research on climate change, and this includes Carbon Capture and Storage technology. Kuwait, Qatar, and the United Arab Emirates also made an assurance that each of them will be giving $150 million each tom support the Saudi Arabian endeavor (OPEC, 2007).

Saudi Arabia shelling out that huge an amount of money for climate change research would indicate that the kingdom is now giving attention to climate change. The World Trade Organization Saudi Arabia is now also a part of the World Trade Organization (WTO) and has recently signed a bilateral trade agreement with the United States. The trade agreement came at a good time since Saudi Arabian imports have experienced a decline. The WTO has become a sign of respect and acceptance for Saudi Arabia particularly because it is the only GCC country and the largest oil producer (Zahid, 2005).

Saudi Arabia initially did not join GATT, the WTO’s predecessor global trade agreement because oil, its sole export at the time, was not part of GATT (still not part of WTO). Later, as the Kingdom developed its downstream oil and petrochemical capacity, joining WTO became a key imperative in order to protect its exports from inordinate tariffs by mature, high-cost producer countries. (Zahid, 2005) For new aspirants at the WTO, rules may be harsh such that they will need to sign bilateral agreements with any member country that requests it, and the terms will have to be extended to other member countries.

Afterwards, a multilateral agreement should be inked with all member countries before being admitted into the WTO (Zahid, 2005). According to Zahid, the WTO had some negative impacts on Saudi Arabia but the WTO may be likened to a medicine. “It is painful to swallow but it eventually makes you better” (Zahid, 2005, n. p. ). In the short term, the WTO will hurt Saudi Arabia, but in the long run, the Saudi Arabian economy will prosper because of the WTO such that there will be increased transparency, protection of copyrights, rule of law, and foreign investment.

Saudi Arabia’s exports will also have access to WTO member countries (Zahid, 2005). The full impact of WTO will be a long and unfolding story for the country. We still need to know the details of the final agreement. WTO has given other countries long implementation periods and many exceptions. Also, we have to see what the final Saudi offer is in terms of tariffs, sectors, binding rates, etc. With this report, we start a series on what the WTO means for Saudi Arabia. (Zahid, 2005) On one point of view, it is regarded that the WTO can enforce better greenhouse gas reductions compared to the Kyoto Protocol.

Peter Franklin of the Guardian proposes the: Negotiat[ion of] a successor to Kyoto and then let the WTO enforce it. Nations that failed to meet their carbon targets would have a proportionate tariff slapped on their imports. Such a system could even be used to deal with countries that refused to sign up to the new agreement. The WTO would unilaterally impose a target on each non-signatory nation, with their excess carbon emissions and consequent penalties being assessed in absentia.

The export-led economies of China, India and other key Kyoto absentees would be particularly susceptible to such pressure (Franklin, 2006). The Kyoto Protocol has no fangs and this could be filled in by the WTO as those who do not approve of reducing greenhouse targets will have to suffer some consequences from the WTO. This could however be treated as a disrespect to a country’s sovereignty. In the long run, since the WTO would attract more foreign investment, foreign investments will also be encouraged in developing alternative, renewable energy solutions in Saudi Arabia.

Consequently, CCS can thrive from a commercial point of view as the awareness of climate change would trigger interest in forwarding this technology for economic gains. The WTO system encourages a good government, which in turn will help in framing policies for increased participation in anti-climate change efforts. V. Problems and Solutions The planet’s worsening climate condition is partly the doing of the industrial cities in Saudi Arabia, from where carbon dioxide emissions from oil manufacturing and processing come from.

The investment of Saudi Arabia in finding solutions for the problems posed by global warming is research and resources. Countries like Saudi Arabia allocate funds for studies. It focuses its studies on oil-related aspects of global warming management. It is important for countries to sponsor studies so that they can get first hand information about global warming and its implications. “Nations should foster the continued development of these epistemic communities not only to stimulate new avenues of research, but also to help create greater opportunities for consensus building and coordinated action” (Lee, 1995, p. 14).

In reducing carbon dioxide emissions coming from oil, there are a variety of methods that could be adopted. One is eliminating subsidies to prevent increase in consumption levels. Simply saving up on energy use can help alleviate greenhouse emissions. Resorting to renewable energy sources provides great potential in dealing with this environmental threat since these renewable energy sources produce no amount of emissions whatsoever. For countries like Saud


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