Saudi Arabia has more than $200 billion in active Oil and Gas projects
2020 was the first time in history the spot price of oil went into negative territory, sending shockwaves through global oil producers. That said, Saudi Arabia still has more than $200 billion in active oil and gas projects.
COVID-19 has decimated the global economy in 2020. Global lockdowns resulted in the demand for oil dropping to unprecedented levels and flooding storage facilities, on- and offshore. Similarly to many of the GCC countries, oil exports account for the bulk of Saudi Arabia’s foreign income.
Saudi Aramco, the world largest oil producer, accounts for 99 per cent of the active oil and gas projects in the kingdom. There are currently more than $200 billion of active oil and gas projects. More than a third of this total is already in the construction phase with two thirds still on the drawing board. Aramco will spend on average $800 million per month over the next 12 months peaking in November 2021 at more than $1,100 million.
With the global oil demand set to peak in the next two decades, Saudi Arabia will want to make sure it maximise its income from oil exports before then.
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