Saudi Arabia is focusing on the diversification of economy, industrialization and eventual move to a knowledge society, according to Minister of Petroleum and Mineral Resources Ali Ibrahim Al-Naimi. “Number one is food. Number two is water. Number three, believe it or not, is energy and environment. These are the three areas of focus. Now, why do I say energy? It's a different energy. It's solar energy,” Al-Naimi said in a recent interview on Nightly Business Report (NBR), which is produced by NBR Enterprises/WPBT2 and distributed by PBS in the United States. “Saudi Arabia today is highly dependent on one source of revenue from hydrocarbons production ... Now we cannot continue forever on this source of income. The whole purpose is, let us do our best to diversify the economy, industrialize and move to a knowledge society eventually,” he said. Asked about oil, which this year has gone from a low of $32 bpd to as high as $147, Al-Naimi said: “We believe that around $75 is a fair price for oil producer and consumer. And why do I say 75? Now, to produce some of the hydrocarbon sources requires a price which rewards the investor. Some of these investments need a price between $60 and $80 and that's why we chose a fair price of around $75.” Asked if oil would make another for a $140 level, he said, “Anything is possible. We will do our best to avoid that. Because I don't believe high prices are good, nor do low prices. We need a price which allows the investor to invest and the producers to produce. We believe 75 and if you want a range, between 70 and 80.” Al-Naimi explained that Saudi Arabia tries to be reasonable and moderate in everything it does. “If I am at an OPEC conference, we will have, of course, differences of opinion. But eventually, moderation becomes the subject of the day,” he added. – SG Asked if he thought recession was over, he said, “… based on what we have seen, the recovery of price and how it's reacting to economic growth, I believe we are on the road to economic recovery..” “I see it in demand for energy. I see it reflected in the price. So it's there and it's happening.” Asked if with the OPEC meeting in December, he saw anything going on in the markets that would call for a change in policy, Al-Naimi said, “Right now I don't believe so. I think we will be as we are today.”
