Energy Consumption Trends in Energy Scarce and Rich Countries: Comparative Study for Pakistan and Saudi Arabia

Energy crisis is raising serious concerns throughout the world. There has been constant rise in energy consumption corresponding to the increase in global population. This sector affects the other pillars of national economy including industries and transportation. Because of these reasons, the traditional fossil-based energy sources are depleting rapidly, resulting in high and unstable energy prices. Saudi Arabia and Pakistan, although different from each other in terms of their economic stability and political systems, still rely heavily on the traditional fossil fuels. This paper presents the comparison of these two countries in terms of their energy consumption and factors affecting it. These factors include, but not limited to, economic development, and growth in population and other sectors such as; industries, transportation, etc. The comparison is also made with the regional and global energy consumption trends and these countries. Moreover, regression models were built to predict energy consumption till 2040 and compare the growth in this sector and share in global energy demand. Energy consumption in oil-rich countries (Saudi Arabia) has been driven through its economic development, while for energy insecure country (Pakistan) it is mainly because of population growth. It was also found that in the next two decades the share of Pakistan in the global energy demand will increase. This concludes that population growth will have more impact on energy consumption than economic growth. It could mean that the shift in energy sector would shift towards sustenance instead of using energy for commercial or industrial usage. Conference Track: Policy and Finance and Strategie