May 27, 2018

Saudi Arabia will need deep pockets if it is to win its oil war with US | Larry Elliott | World news | The Guardian


News this week that the Saudi government is to raise more than $27bn from bond sales is a sign that the strain of getting involved in a spending battle with the world’s biggest economy is taking its toll. Saudi Arabia is an expensive country to run for the House of Saud. Fearful of Iran, it has imported the latest military kit to show that it is the Middle East’s regional superpower. Higher defence spending has also been needed to fund action in Yemen and to counter the threat from Islamic State. In addition, Saudi Arabia has an unemployment problem that it fears…

Saudi Arabia may go broke before the US oil industry buckles – Telegraph

If the oil futures market is correct, Saudi Arabia will start running into trouble within two years. It will be in existential crisis by the end of the decade. The contract price of US crude oil for delivery in December 2020 is currently $62.05, implying a drastic change in the economic landscape for the Middle East and the petro-rentier states. The Saudis took a huge gamble last November when they stopped supporting prices and opted instead to flood the market and drive out rivals, boosting their own output to 10.6m barrels a day (b/d) into the teeth of the downturn….

Effect of Saudi Arabia Decisions on Global Crude Oil Supply & Demand


The Kingdom of Saudi Arabia exerts more influence on the global price of crude oil than any other nation state. Oil analysts study Saudi policy and politics with as much attention to detail as financial analysts spend on US Federal Reserve meeting minutes. The current confluence of dramatic changes external and internal to the Kingdom merit examination. Any immediate internal policy shift or external geopolitical force that changes Saudi production affects global supply. Long term Saudi production and consumption trends influence how the world will use hydrocarbon energy. What drives Saudi crude oil policy today? Saudi Petroleum Minister Ali al-Naimi justified…

NEWS  |  Saudi Arabia Restructures Oil Giant Aramco  |  Rigzone

DUBAI/KHOBAR, Saudi Arabia, May 1 (Reuters) – Saudi Arabia is restructuring the world’s biggest energy company, Saudi Aramco, in a move apparently aimed at letting it operate more at arm’s length from the powerful oil ministry. Analysts expected technocrats to get a freer hand in running the state-owned giant. Some said the restructuring might be the first step in a shake-up of the Saudi energy sector, and could possibly pave the way for a prince to take over the ministry itself, which is traditionally run by industry experts rather than members of the royal family. Citing unnamed sources, Saudi-owned Al…

10th Annual Global Local Content Summit

GLCS 10th

Ministries and NOCs from Uganda, Ghana, Nigeria, Mozambique, Tanzania, Brazil, Argentina, Mexico, Trinidad and Tobago, Oman, Saudi Arabia, Kuwait and Sri Lanka are due to present their local content case studies at the 10th Annual Global Local Content Summit this September at the Pestana Chelsea Bridge Hotel, London, United Kingdom. World’s leading conference dedicated to the Local Content community to include speakers from 17 global nations and chairman from PROMINP. The conference, hosted by Oil & Gas IQ – a division of global events company IQPC – will be a unique opportunity for local content leaders to discuss the development,…