Saudi Arabia Energy Articles & Analysis

Chapter | Energy from The Report: Saudi Arabia 2016

The drop in the price of oil since mid-2014 has had a significant impact on Saudi Arabia, which relies on the stuff for the vast bulk of state revenues – 73% by some estimates – and for around 40% of its GDP. While global demand remains high, the increasing supply of oil on the international market, much of it coming from Russia, US shale oil and Iran, has continued to push prices down. The...

2016 witnessed the launch of the Kingdom’s historic Vision 2030 and the accompanying National Transformation Programme, both of which call for a major overhaul of the state’s economic apparatus and envision a more open market framework and more dynamic, private sector-led growth moving ahead.

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Moves to privatise utilities assets in Saudi Arabia and expand the reach of its networks through increased investment should create new opportunities for private operators and service providers.

 

Ongoing talks to reduce the global supply of oil in an attempt to raise prices have so far yielded only preliminary agreements, with Saudi Arabia and other major oil-producing nations historically unwilling to reduce their exports. However, with oil prices falling from $115 per barrel for Brent crude in June 2014 to a low of $28.50 in late...

 

In a January 2016 interview, Deputy Crown Prince Mohammed bin Salman Al Saud hinted that Saudi Arabia was considering selling a stake in Saudi Aramco, the world’s largest oil producer and the central player in the country’s energy sector. The news caught many people in the energy industry by surprise and led to a scramble to try to understand...

 

In December 2015 Saudi Arabia launched a five-year energy subsidy reform plan aimed at reducing government expenditure and making the Kingdom more energy efficient at a time when revenues have been hit by low oil prices. With the Kingdom relying on oil for an estimated 73% of government revenues, maintaining the existing subsidy framework...

 

The drop in the price of oil since mid-2014 has had a significant impact on Saudi Arabia, which relies on oil for the vast majority of its fiscal revenue – 73% by some estimates – and for around 40% of its GDP. While global demand remains high, the increasing supply of oil on the international market, much of which is coming from Russia, US...

2016 witnessed the launch of the Kingdom’s historic Vision 2030 and the accompanying National Transformation Programme, both of which call for a major overhaul of the state’s economic apparatus and envision a more open market framework and more dynamic, private sector-led growth moving ahead.