Oil and Women

Today was International Women’s Day, and we awoke to contrasting views in Arab News: one focusing on the desire that women have for more liberties, while the other espoused the traditional role that women currently play in society. As is expected, this topic was brought up again during the course of the day and was met with cautious optimism for prudent reform in one case, and excitement over changes that are taking place in another.

The main subject of the day, however, was oil. We visited the King Fahd University of Petroleum and Minerals (KFUPM) in the morning, a technical university that places many of its students in the extractive and related industries. We heard about the mission of the school, which mirrored that of Jesuit institutions: to provide students with an experience and not just an education in order to create “well rounded global citizens.” We were told that the students receive numerous job offers, which appears to stand in contrast with the rest of the country and highlights both the importance of technical skills in a resource abundant region and the need to increase employment for youth.

We then headed to the state-owned oil company, Saudi Aramco, where many KFUPM students work. Our guide stated that the company manages 25% of the world’s oil as well as large gas reserves. We learned some interesting facts about the history and current status of the oil industry and Aramco’s role in it. After a quick walk down by the Gulf, we ended the day with a trip to a local science museum and dinner.

Energy consumption in Saudi Arabia is growing along with the economy. The country finds itself in somewhat of a catch-22: it will need to devote greater amounts of its energy production to domestic consumption, but given the heavy domestic subsidies that reduce the sticker price of gas, profits on domestically consumed oil and gas would be much lower than exports, undermining a key source of government revenue. Therefore, more energy efficiency would be a welcome change, the responsibility for which may fall on the shoulders of KFUPM students. The university plans for some of these to be women in the near future, although males and females will be kept separate.

Once again, I was impressed by our Saudi hosts and how genuinely interested they are in improving their education system, diversifying their economy and strengthening governance by learning from best practices and making investments where needed. I hope society is ready for the types of changes that are required in order to move the country forward. They have been extremely welcoming and gracious and I look forward to learning more throughout the rest of the week.

Evan

P.S. I'm pretty sure that I won the competition for best photo on the trip. I guess we will have to see who comes in second.