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An article published on the Council on Foreign Relations website highlighted the challenges facing the Saudi oil sector's vision, highlighting the difficult challenges all focused on oil prices.
Saudi Arabia faces the dilemma of keeping oil prices at high levels and facing shale oil in the United States, particularly with an expected drop in the cost of shale crude oil production, indicated the article.
In the context of the most important challenges facing the world's largest oil exporter, the article has highlighted the pressures on oil prices, which depend on the revenues of the Saudi economy, the trade war between China and the United States, the risk of contracting the world economy because of this war, in addition to increasing the capacity of some members of the OPEC "Increase production .
Saudi Arabia's efforts to develop its activities and investments in refining and petrochemicals, as well as in global natural gas, would help the kingdom overcome major changes in the global energy market, indicates the article.
– Challenging oil prices
Studies show that integration across the oil value chain can increase the long-term profits of large companies such as Saudi Aramco. Saudi Arabia has focused its efforts on reducing the volatility of the oil price cycle through its role in the agreement to reduce production between OPEC countries and non-oil producers. – OPEC members led by Russia.
Speaking on the sidelines of a major energy gathering in Abu Dhabi, the new Saudi oil minister, Prince Abdul Aziz bin Salman, whose long experience extends to the highest levels of the Saudi oil sector, reassured the oil markets. Long. "
As Saudi Arabia prepares for the future, the current challenges in the energy market – the need to drive up oil prices – are thorny, especially since the US-led trade war China continues, which fears a recession in Asia, a major market. For energy.
– Iranian oil
The prospect of a greater amount of Iranian oil on the market is another blow to oil prices, especially as the deterioration of trade relations between Washington and Beijing deters China from complying with US sanctions against Tehran.
France's efforts to rescue the Iranian nuclear deal are also a factor in supporting Iran's oil exports, putting pressure on oil prices. In addition, Iraqi oil production is increasing and the United Arab Emirates continues to make progress in its project to increase its oil production capacity to 4 million barrels per day by the end of 2020.
In the United States, shale oil adds to these challenges, particularly after some have predicted a drop in shale oil production costs, but cost reduction and automation may tip the balance favor of many companies.
Source: "Council on Foreign Relations"
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