Driving Forces Learn

Saudi Arabia

DRIVER: Saudi Arabia could see some tumultuous economic policy changes provoked by the lower oil price era and the emerging challenge from renewable energies. It also faces threats from Middle East turmoil.

[New] Australia represents an important contrast to the proxy warfare risks generated by the struggle between Saudi Arabia and Iran.
[New] Saudi Arabia will gradually ease its extra unilateral cut of 1 million bpd over the course of the next few months, beginning with monthly production increases of 250,000 bpd in each of May and June.
[New] China's energy consumption from Bitcoin mining in 2024 will exceed total energy consumption of countries like Italy and Saudi Arabia, and the carbon emissions will exceed annual greenhouse emissions of countries including the Netherlands, Spain, and Czech Republic.
[New] Outside the UAE, many countries like Egypt and Saudi Arabia will continue to host in-person prayers throughout Ramadan but will impose new regulations.
[New] Across the broader Middle East, Saudi Arabia plans to help nations install more modern and efficient hydrocarbon technologies that will cut back on emissions.
[New] Saudi Arabia has announced a 7% budget cut for 2021 but it now has room to ease up on austerity while keeping the fiscal deficit within the projected target of 4.9% of GDP.
[New] KSOE will be responsible development of green hydrogen, while Hyundai Oilbank will deal with blue hydrogen, aiming to produce hydrogen from liquefied petroleum gas supplied from Saudi Arabia's Aramco.
[New] Israel could learn from the types of threats being used against Saudi Arabia, being that it shares a common foe with Riyadh.
Future oil prices will depend on whether low-cost producers hold back production, since a nation like America or Saudi Arabia can easily flood the world with oil for years, and still make a profit at prices of less than $45 a barrel.
Carbon emissions from Chinese bitcoin mines are accelerating rapidly and will soon exceed energy consumption levels of Italy and Saudi Arabia if urgent action is not taken.
Unchecked, China's bitcoin mines will generate 130.5m metric tons of carbon emissions by 2024 - close to the annual greenhouse gas emissions of Italy or oil-rich Saudi Arabia.
If Beijing is seen as too close to Iran then that could risk its future relationships with Tehran's bitter rivals in Israel, Saudi Arabia, and Egypt among other countries.
The green initiatives, which are part of the Vision 2030 reform strategy, will place Saudi Arabia at the center of regional efforts to meet international targets on climate change mitigation, as well as help it achieve its own goals.
Saudi Arabia's initiatives will raise vegetation cover, reduce carbon emissions, combat pollution and land degradation, and preserve marine life.
Saudi Arabia had unilaterally reduced its output by 1 mln bpd and will be gradually bringing that output back online as well.
Attacks on Saudi Arabia put the lives of innocent civilians, including U.S. citizens, in danger.
Last year, Saudi Arabia launched a national strategy that aims to train 20,000 data and AI experts, set up 300 AI startups and attract $20 bn-worth of investments by 2030.
China may sense an opening in the Middle East, given the priority the Biden administration has placed on human rights - which could complicate already scratchy ties with Egypt, Saudi Arabia and Turkey - and the perpetually thorny talks to restart the Iran nuclear deal.
While the US oil industry has dominated global oil supply growth in recent years, a looming supply deficit could benefit nations that are part of the Organization of the Petroleum Exporting Countries, including Saudi Arabia, Iraq, the United Arab Emirates and Kuwait.
More upside is expected for oil prices in 2021, especially after OPEC's (Organization of the Petroleum Exporting Countries) top producer, Saudi Arabia, recently decided it will cut one million bpd of crude output in February and March.
With the new US administration, the potential reinstatement of the Iran nuclear deal could upset Saudi Arabia, some other Gulf Cooperation Council (GCC) countries and Israel.
Iranian malign activities are not a threat to the United States, but they trouble some of its friends, particularly Israel and Saudi Arabia.
Going beyond the G-7 to include other development partners like China, Saudi Arabia, and South Korea will provide African countries with substantially more resources to tackle the pernicious effects of COVID-19 and to build forward better.

Last updated: 18 April 2021

Saudi Arabia

Login