"I would say it's a fair possibility that the government would look seriously at suggestions of investing in upstream gas projects," Abdullah Dabbagh, a member of the council's economic and finance committee, said in an interview.

"Gas will be the limit because (investment in) upstream oil is out of the question. But I see a possibility that the government might consider favourably a participation by foreign companies (in upstream gas)," he said.

The Shura is an advisory body appointed by the king. It is consulted on various issues but its legislation is not binding.

Dabbagh is also Chief adviser to the board of the Council of Saudi Chambers of Commerce and Industry, which he headed for 15 years. His views offer a glimpse into the mood of the business community and the Shura toward the sensitive issue of foreign investment in Saudi Arabia's strategic upstream energy sector.

Saudi Crown Prince Abdullah stirred intense interest in the country's oil industry in September when he held a rare meeting with top US oil executives during a trip to Washington.

The meeting has fuelled speculation over whether Saudi Arabia would be willing to open up its most treasured energy business -- upstream oil and gas -- to foreign firms.

In 1975 the world's largest oil producer nationalised its oil industry, ending concessions held by major US oil firms.

Industry insiders have said Riyadh was seeking investment in undeveloped areas like refining and petrochemicals and had no plans to allow any foreign ownership in its oil and gasfields.

Foreign firms already have joint ventures in petrochemicals and hold a large stake in distributing and refining Saudi oil.

US energy secretary Bill Richardson said on Tuesday he understood some form of involvement in Saudi Arabia's upstream was on the cards, something Washington would encourage.

Dabbagh said it would not make sense to allow foreign investment in upstream oil projects in a country which already has more than two million barrels a day of unused capacity.

But he said he would "definitely" support the opening of the upstream gas sector to foreign investors.

Dabbagh predicted that sickly oil prices, the need for advanced technology and rising Saudi electricity demand would create opportunities in upstream gas.

"For the time being, with the decline in oil income, and soon, it might be very hard for us to go it alone," he said.

"The technology in gas has changed a great deal in the last 10 years or so. Gas is very important. We have to generate a great deal of electricity in the next 20 years," he added.

Dabbagh said Saudi businessmen had told him they would seek joint venture opportunities if foreign investors were given access to upstream gas projects.

"A lot of businessmen would be interested in that. I am talking about deep-pocket businessmen. The majority of businessmen would like to see the country open up," he said.

The interest of Saudi businessmen in upstream gas projects with foreign partners would make it easier to sell the idea to the establishment, he said.

He stressed that Prince Abdullah, who put foreign investment high on the agenda on his landmark world tour, merely asked US executives for ideas on developing Saudi Arabia's energy sector.

"The prince opened the door for ideas. He did not commit himself to anything. We are rational enough to accept good ideas if they come along," he said.

This week, the crown prince held a question and answer session with members of the Shura Council about his overseas tour, parts of which were televised. But the council has not been formally consulted on the issue of foreign investment in the upstream energy sector, Dabbagh said.