Saudi Arabia’s energy sector remains the backbone of the economy. As of March 2020 energy operations were facing the twin challenges of low oil prices and sluggish demand as economies around the world ground to a halt following the outbreak of Covid-19. However, the fundamentals underpinning the Kingdom’s energy sector remain strong. The size of its endowment, the comparatively low cost of...
Saudi Arabia Energy
Saudi Arabia’s decision to weaken the link between hydrocarbons and economic growth, and pursue a policy of diversification has seen a wide range of projects come to fruition in the last several years. While at present the Covid-19 pandemic and the unprecedented plunge in oil prices are causing significant short-term uncertainty, the reforms that have been put in place in recent years should stand the Kingdom in good stead over the longer term.
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Articles & Analysis | New gas development poised to increase capacity in Saudi Arabia from The Report: Saudi Arabia 2020
Natural gas looks likely to play an increasingly important role in Saudi Arabia’s economy in the years ahead as the Kingdom begins to tap into new reservoirs that are poised to satisfy the growing demand from the power generation, desalination and industrial sectors. Prince Abdulaziz bin Salman Al Saud, the minister of energy, hinted that the...
Articles & Analysis | The short-lived price war in early 2020 showcased the global importance of Saudi Arabia's domestic oil policy from The Report: Saudi Arabia 2020
Crude oil remains Saudi Arabia’s biggest asset, and economies around the world are reliant on how the Kingdom responds to challenges. At 2019 production rates, Saudi Arabia’s known reserves are expected to last more than 50 years, and at the start of that year more than 80% of the oil produced by the state-owned energy company, Saudi Aramco,...
Articles & Analysis | New energy projects set to ensure sustainability in Saudi Arabia from The Report: Saudi Arabia 2020
Saudi Arabia’s energy sector remains the backbone of the economy. While the country’s reliance on the commodity exposes it to external shocks, domestic energy policy and influence within the Organisation of the Petroleum Exporting Countries (OPEC) can work to dramatically shape international oil prices, which in turn affects many parts of the...
Saudi Arabia’s decision to weaken the link between hydrocarbons and economic growth, and pursue a policy of diversification has seen a wide range of projects come to fruition in the last several years. While at present the Covid-19 pandemic and the unprecedented plunge in oil prices are causing significant short-term uncertainty, the reforms that have been put in place in recent years should stand the Kingdom in good stead over the longer term.
Saudi Aramco has listed shares on the Saudi Stock Exchange (Tadawul) in the world’s biggest-ever initial public offering (IPO). Shares began trading on December 11, and Saudi Aramco’s stock rose by 10%, the Tadawul’s daily limit.
Rising energy demand and a commitment to divert hydrocarbons to processing and export has incentivised a shift toward renewables in Saudi Arabia, with the Kingdom set to become the region’s largest market for wind energy components and services.