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With these statistics, it is undeniably true that Saudi Arabia’s contribution in the energy industry position’s herself as key player in the global economy. This paper therefore discusses the oil production in Saudi Arabia through understanding its history and development over the years.
Statistics derived from organization of the petroleum countries (OPEC) in 2014 showed that Saudi Arabia’s value of exports from petroleum related products to be about $ 321, 723 million, and its current crude oil reserves standing at 265,789 million barrels. In a whole ,oil related products, natural gas reserves constitute about 8317 billion cubic meters. Pushed by the demand for oil of about 1000 barrels per day , Saudi Arabia has increased its production capacity to be about 9637 barrels per day; this is about 2507 barrels per calendar day refinery capacity. Last year, Saudi Arabia’s export earnings came from natural gas with 100030 million cubic meters exported globally (Bronson, 56).
Before Saudi Arabia controlled its oil industry, the first king of Saudi Arabia Abd al Aziz Ibn Abd granted oil concession in 1923 to British investment groups who exploited, and utilized the concession granted. It is after the discovery of first oil reserve in 1938 that the concession agreement was changed to Aramco’s concession. It allowed an equal haring of profits between the company and the government on a fifty-fifty basis. With the discovery of large quantities of oil reserves in 1945, the use of pipeline was in evitable. The trans-Arabian pipeline company came into existence owned by Aramco’s group. After completion of the Tapline pipeline in 1950, it did collect oils from fields, and it was able to handle 480, 000 barrels per day. Tapline continued to operate with a number of challenges coming from within and externally and in 1982; it was forced to stop its operations in Saudi Arabia (Branson, 45).
After 1982 and
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Saudi Arabia is an oil rich country and its government exercises strong control over the nation’s major economic activities. Saudi Arabia has been ranked as the world’s largest petroleum exporter with 18% of world’s explored petroleum reserves.
Previously in 2009, the Gross Domestic Product per capita stood at 9300 US dollars. This indicated an upward growth of 145 US dollars (Trading economics, 2012). In 2011, the country’s gross domestic product grew further by 6.7% in comparison to 2010. Saudi Arabia economy is largely dependent on oil.
The Kingdom of Saudi Arabia is located in a vital maritime location facing the Arabian Gulf and the Red Sea. The Kingdom has approximately 2100 km of coastal beaches attracting tourists seeking a little fun in the sun. These beaches, characterized by a vast variety of marine life, also bring a great deal of benefit to the kingdom’s fishery industry.
The natural assumption that the availability of a rich natural resource such a soil would automatically entitle a country possessing it to affluence therefore appears to be belied by the statement of the Prime Minister of Sao Tome.
world’s biggest population, and Saudi Arabia, a dominion whose constitution is the Islamic Shari’a, the two countries share extensive resemblance in geopolitical terms (Matthews, 2010).
The rising energy demand in China that outstripped domestic supply prompted the
The paper discussed the social imbalance between the rural and urban poverty in Saudi Arabia and the efforts that the government is taking in tackling poverty in the oil-rich economy. Two of the main initiatives taken by the government in trying to
So far, research has shown that this region has about 810 billions of barrels that have been proven, which amounts to more than half the total oil reserves in the world (Ehteshami 2008, p. 23). In this regard,
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