Case Study Of Saudi Arabia

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The largest producer and exporter of oil to the world is Saudi Arabia, and has a large reserve of the world estimated by one quarter of the oil – more than 260 billion barrels. Most are located in the Eastern side , in Arabian gulf there are a lot of oil fields such as a largest onshore oilfield in Ghawar and the largest offshore oilfield at Safaniya.

Saudi refineries produce almost 8 million barrels of oil per day, and they plan to increase production to around 12 million barrels per day.
Saudi Arabia plays a unique role in the global energy industry because it is the largest exporter and producer of oil around the world . The policies on the production and export of oil, natural gas and petroleum products have a major affect the energy
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Saudi Arabia exports the largest amount of oil compare to the whole world. Oil been always having its ups and downs but lately oil reach the lowest point in many decade, between 2014-2016 Saudi made strategic plans and challenges to make the economy a little bit more independent from oil. There are many issues facing the case of a change in the government of the Kingdom , as a reflection of this change on oil prices and the budget deficit in addition to the effect of the change on unemployment, education and health care issues , and the extent of diversification of the economy and meet the oil production in the developed world.

Saudi Arabia’s challenges in the Global Oil Market . The first challenge ,the adoption of the Saudi economy on oil and gas , accounting for around 44 % of GDP , than those imposed by the trend toward rapid economic diversification of income sources.
The second challenge , a sharp decline in oil prices by about 60% , given that oil revenues represent more than 90% of the Saudi budget revenues , for being the largest oil exporter in the world, at a rate of 8 million barrels per day , with a maximum output capacity to 12.5 million barrels per day .

policy options to overcome them
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• Iran return in oil market is huge problem for KSA , but they can overcome this by provide strong relationship with international countries to keep buying from KSA's oil .
• Reduce the consumption of Saudi citizen by taxes or reduce subsidies for the power that use oil in production .
• To overcome the implement the plan problem , should the government have strong rules to let everyone do the work probably. Also, to overcome this challenges ,Saudi Arabia shouldn't just build strong vision or plan such 2030 , but should do it to develop their
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