The future of oil for saudi arabia

Monetary agencies around the world have recently reported an exponential increment in the revenues and total reserves in Saudi Arabia. This growth is as a result of the increase in the oil prices across the world. Furthermore, OPEC has been enhancing their production and rate models starting from the year 2013, and Saudi Arabia is the largest stakeholder; plays as the swing oil producer by readjusting its rates and production in respect to the world fluctuations and evolution of the international demand (Fattouh & Anupama, n. p). Interestingly, the member countries in OPEC have exhibited some trends that indicate deviation from the accord of their commitment with respect to production rates. The above developments raise the perception that Saudi Arabia might be making strides away from oil and gas exploration.

The latter statement is made realistic by the efforts by the Saudi Arabian government in drawing its attention to a diversified, flexible and knowledge-based economy by investing its resources in technologies and sectors that are growing at an international capacity. Therefore, it can be established that Saudi Arabia will consider the exploration of other investment options whilst holding on to its biggest economy (Baumeister et al. The production of crude oil in Saudi Arabia is highly influenced by world oil demands at any given time. Therefore, Saudi Arabia always tries to manage the production of oil in order to manage oil prices and avoid fluctuations in the market. Therefore, it can be established that the future of oil in Saudi Arabia still remains unclear.